Nearly all entrepreneurs say they want to eventually sell their businesses, but “wanting to” does not always mean “preparing for!”
The idea probably should be to spend a little time now asking and answering the right questions so that you are thoroughly prepared for whatever may come your way moving forward.
The truth is that thinking about writing a will may not be the most pleasant thought, but I have never met a person who regrets not putting together a final plan. In many ways, the process about which I speak is very similar: you evaluate, envision, and then execute.
Ideally, owners can and should choose their exit strategy. Unfortunately–not to mention surprisingly–over half do not. Most owners should be currently answering the following questions:
- Do you want to sell your business for the largest dollar amount possible?
- Do you want to sell your business for less than ideal money but continue working with the buyer if the fit is comfortable and strategic?
- Do you want to sell your business and exit at close?
- Do you want to sell your business and receive some money at closing and the rest as part of a structured “earn-out” process over several years?
- Lastly, do you want to sell your business to your children or employees?
Now ponder another set of questions that unprepared owners might not ever even consider:
- Do you want to sell your business in distress?
- Do you want to sell to liquidators?
- Do you want to sell to your estate upon your death?
Inevitably, the entrepreneur will sell their business to someone or some entity. Unfortunately, most entrepreneurs do not understand the importance of planning to ensure they control the shape and execution of their exit strategy. Whether it is Sumus or some other team of experts, it is important to think about how you would like to exit, and how are going to make the plan a reality.
In the end, what is your focus? Give us a call so we can pose questions and formulate strategies that will get you going in the right direction.