Selling Your Business? Here’s How to Get the Most for It

bfsSmall business owners have plenty to worry about with the new Fiscal Cliff deal. Now we know exactly how it will impact business owners that have been successful. I recently spoke to a small business client of mine. He felt that after 40 years of building a successful business that the government was just trying to take it from him.

So is this a good time to exit? Have you been considering a sale of your business?

Some of you may have been considering selling your small business lately for various reasons, whether that’s retirement or just nervous about the future. Here’s some tips on how to get the most out of your exit.

1. It’s still your business. Even though you are looking for the exit, it’s still your responsibility to keep the ship in top shape. You want to continue doing “business as usual”. That way you will get the highest price. So don’t start slacking off and daydreaming of that Caribbean Cruise after retirement.

2. Begin with the end in mind. I’m borrow from the late Stephen Covey here. Keep in mind who your ideal buyer is during the process. You also want to consider how much you want to get from the sale, and do what you need to do to get that price. There may also be optimal times of the year to sell a business depending on your particular industry.

3. Be flexible. Preparing your business for an eventual sale may require some changes on your part. Be ready to adopt a new business or marketing plan in order to attract the buyer.

4. Know the competition. It’s important to poke your head out of the sand once in a while. Know what competitors sold their similar business for. Knowing what is going on in your industry will be helpful when it comes time to negotiate prices and contracts with buyers. Don’t forget to maximize your tax so that your get the most during the sale. Talk to your tax advisor.

Are you selling your business? If you would like some help with the financial decisions you are going to face wight the sale of your small business, write me at david@lexwealth.com, or call me at (859) 225-2596.