Selling/Exiting Your Business
Sooner or later, your business will change ownership. The only question is, are you going to be able to control that process? Or will you be at the mercy of circumstances or the demands of the future owner?
Beat the Odds!
If you prefer to exit from your company by selling it, the following statistics highlight the challenges on this path:
100% of all companies change ownership at some point in the future.
Only 15-20% of companies that are listed for sale, actually sell.
Why is that?
Common Reasons for Failing to Sell a Business
While a sale may fall through for a variety of reasons on both the Seller’s and Buyer’s part, some are specific to the Seller’s situation. Among others, these include:
- Seller is unprepared for the sale emotionally and otherwise, is unprepared to enter a conversation with a prospective Buyer, and as a result misses the opportunity to sell
- Seller has an unrealistic expectation of company value and value potential
- Company is not ready to be sold at the desired price point
Find out how prepared you are to sell your business! Clicking on the button below will take you to a short questionnaire that will generate your personal readiness score:Get Your Personal Readiness Score!
How to avoid these common pitfalls
Ideally, you have given yourself a multi-year timeline to prepare for the change of ownership by working diligently and systematically on maximizing your company’s value and getting clarity on the timing and terms of the sale/transfer and your life post-sale. This is what it will take for you to walk away from your company with a smile on your face, money in the bank, and no regrets about your decision.
“If you fail to plan, you are planning to fail.”
- Benjamin Franklin
Designing your Exit Plan can be a challenge, and most business owners don’t know where to start the thought process, let alone develop a plan that is actionable. Confused or daunted by the task, they tend to postpone dealing with the issue until there is no more time to plan or are forced to exit the business for a variety of reasons (personal health, financial troubles, divorce, and other life-changing events). When that happens, the seller may find herself at the mercy of circumstances, including adverse market conditions, or the future owner dictating terms and conditions of the transaction. As Franklin so famously noted, “If you fail to plan, you are planning to fail.”
Click on the button below to determine how ready you are to sell your business. It will take you to a brief questionnaire. Your answers to the questions will help us create a valuable free ebook with personal recommendations for you:Click to get Your Personal Readiness Score!
The Four Exit Paths
There are several different exit paths that can lead to happy outcomes. The choice depends entirely on your personal needs, goals, and aspirations both short-term and long-term.
Each of these paths comes with its own advantages and disadvantages. And each is highly customizable to the needs and wants of the Seller (and buyer/future owner).Get the Checklist for a Successful Exit Here!
How We Will Help You
Grow2Sell™ helps you design and implement an Exit Plan that is right for you, working with you on several elements, including:
- Your personal readiness to exit the business.
- Your vision of your life post-sale/transfer
- Your financial wants and needs short-term and long-term
- Your “financial gap”--the difference between what you have and what you will need from the transfer of ownership
- Your company value drivers
- Your timeline for exiting the business