Planning the Sale of Your Business is Essential

By Trip Holmes

Many people think of selling their business a bit like winning the lottery: A golden ticket to instant riches. Something that requires very little effort and promises a huge payoff. When you’re accepting a large, unsolicited offer, it’s easy to see why it feels that way.

However, in most cases there’s a catch. You can sell your business to the first unsolicited buyer if you wish – but if you want to ensure a fair sale, one that yields all the profits you deserve and meets all of your goals, planning on your part is absolutely essential.

It’s never really too early to begin thinking about your exit – even during the busy startup and growth stages, you should start planning for the sale in order to retain value. As a business owner who’s worked hard to achieve success, you understand how valuable your business is. Don’t risk losing any of that value because you failed to plan ahead of time!

So, what exactly does planning look like? There are a number of different ways to navigate the sale of your business, but here are some general guidelines: 

·      Have a clear idea of your objectives well before going to market.  Do you want to remain involved in the business? Will you remain a shareholder or employee? Do you want to sell all or just part of it? Having a strong vision of what you want out of the sale will increase your chances of getting just that. In contrast, failing to understand what you want may lead to a deal that leaves you feeling unfulfilled and disappointed.

·      Be ready to work. Sure, you can sell your business for next to nothing and you’ll barely need to lift a finger. But if it’s a strong deal that you’re after, be prepared to devote time, money, and resources into the sale process. Don’t expect it to be easy, because that may leave you completely unprepared. Instead, expect the acquisition to be a long and carefully thought out process, and plan accordingly. Make sure your best people are on it and hire outside help when necessary.

·      Hire a mergers and acquisitions (M&A) adviser/business broker early on. An experienced and trusted M&A adviser is perhaps your biggest asset in a sale, aside from your business itself. M&A advisers negotiate to maximize the sale price and terms of the deal. Basically, they fight on behalf of you and your business to make certain that you reap the benefits of all your hard work.

·      Don’t rely on your accountant or corporate attorney to do all the work. Accountants and general corporate lawyers play a crucial role in the sale, but it’s not the only role or even the most important one. They are important people on your team, along with your banker, financial planner, estate planning attorney, and of course, your business broker.

We understand that busy companies find it hard to make time for acquisition planning, but a little bit of planning now and periodically thereafter will go a long way down the road. Think of it like a favor that you’re doing for your future self – because you will be thanking yourself profusely when you fetch a sale price that you hadn’t even dreamed of!

Contact Us Today to Get Started

Since 1984, Sabre Capital has been a trusted partner to small and family-owned businesses across the state of North Carolina. We know that each business is unique, and we help our clients continue their unique legacies through a variety of services, including mergers and acquisitions. Call today at 919-847-0099 to get started with the high-touch service required to maximize your sale. You’ve worked hard – you deserve it!