One of the topics I constantly discuss with Financially Simple visitors and clients, especially the ones who own businesses, is exit planning. To explain the concept to people, I find that it’s sometimes easier to tell them what Exit Planning is NOT.
In our Building a Sellable Business series, you’re finally ready to sell! Negotiations between your team and the buyer’s team are all wrapping up. However, the last step, the closing of your business sale, hinges upon acceptance of a purchase agreement by both buying and selling agents, and many sellers gloss over the details within it to get to the closing table as quickly as possible. But now is not the time to become lax. This article is designed to give you some of the many things to look out for as you review the hundreds of pages of legal “mumbo-jumbo.” After all, the wording in the purchase agreement protects you from legal or financial risk after the sale of the business.
I hear from clients every day, and many of them ask me, “Hey, Justin. Should my investment strategies change if…..” And the “if” at the end of their question could be “if I’m retiring soon.” It may be “if I’m spending a fortune on my kids’ college education.” Or more importantly in my line of business, I hear, “if I’m selling my business soon.” Well, that all depends on you, friend. It all depends…
With the volatility in today’s small-business marketplace, you may be looking at how to sell your business. You hope the transition is a smooth and profitable process. Under an ideal circumstance, selling a business is not an easy task. Lack of sale preparation, deficient or misaligned expectations can and often do conflict with market realities. No matter the industry and sector, the key to achieving your desired outcome is an efficient pre-sale planning. The most successful sellers are extremely careful. They ensure they get the pre-sale preparation right. Here are the common mistakes and how you can avoid them.
As a business owner, personal financial planning is key to getting to the next stage of life, whether that’s retirement or just a change in direction for your own personal gain. This is where you reach the point where you ask yourself, “Is my business WORTH the amount of money that I need to transition to the next phase?” Here’s the thing, when it comes to entrepreneurs, we’re audacious. We see the mountain and we start climbing. Failure just isn’t an option. We might stumble, but eventually, we will reach the peak or die trying. But when we are near leaving, this determination before we put our business up for sale can backfire on us. Cost-cutting measures to make our business look better on paper can ultimately hurt its sell-ability. How it is possible that streamlining a business could be bad?
I was reading a report by the Exit Planning Institute, about a study of business owners and their readiness to retire. The result really surprised me! There were two statistics that I thought I needed to bring to your attention. These stats literally just blew my mind. I mean they are just unbelievable!