by Karen Stern
The first step toward successfully selling your business is to give yourself plenty of time. Since many baby boomers are likely to consider a sale transaction in the next three to five years, now is the ideal time to begin preparations.
While there are many items to consider within the process of selling your business, below are a few tips for implementing a successful exit strategy:
1. Execute a professional business valuation. In addition to helping you learn how much your business is actually worth, a good business analyst can help you discover specific value drivers or eroders that your business is sensitive to.
2. Use quality information. Your purchase price might not be influenced by top-tier information, but low-quality financial and operational information could hurt your sale.
3. Do estate planning. Planning for tax liabilities is important, but don’t forget to address the personal and estate liabilities in addition to business taxes.
4. Increase profitability. Make sure your operations are as lean as possible. The quality of the underlying earnings will increase the value of your business.
Selling your business is a big step and not one to be taken lightly. If you have any questions about selling your business, succession planning, or other big changes within your company, contact your business adviser.
Karen Stern, CPA, (kstern@bswllc.com), partner in charge, Brown Smith Wallace Entrepreneurial Services Group, provides tax and accounting services for companies ranging from start-ups to $20 million in revenue.
Submitted 7 years 80 days ago