How do I make plans to exit my business?
"How soon should I begin to think about selling my business?"
"How many years prior to my target transition time should I begin to prepare my business for sale?"
These are two common questions we hear from business owners, and we'd like to do our best to answer them here. Generally, we recommend preparing your business for sale two to three years prior to your target transition time.
In other posts, we’ve highlighted the following five questions for business owners to ask themselves prior to selling:
Do you have management in place apart from yourself?
Do you have clearly defined and efficient operations?
Have you eliminated unnecessary expenses?
Do you have your accounting and bookkeeping in order?
Do you have a family member that is capable and trained to succeed you?
Knowing the current status of your business prior to selling is crucial in order to make the adjustments needed to get the best possible sales price.
Further, business owners tend to have certain expectations about how much their business will be worth once the time comes to sell. We’ve had the unfortunate experience of explaining to business owners that their business wasn’t quite worth what they thought it was worth.
We encourage you to use the list of questions listed above as a catalyst as you begin making plans to exit your business. Allow us to walk alongside you through the selling process starting now. It is never too early to start preparations for the transition.
If you’re looking for a new business opportunity in Arkansas or Oklahoma, or more information on selling a business, buying a business, or to schedule an informational meeting, call 479.784.9522 or email mark.kincannon@resolutionep.com.