Perhaps you’re planning to retire, or perhaps you’ve decided to pursue a different type of business venture. You realize this is the perfect time to sell your business, and you want to ensure you’ll receive a profit that reflects the time and dedication you’ve put into your business. A strategic executed business exit plan is the cornerstone of intelligent and responsible entrepreneurship.

Because so many don’t have a business exit plan in place, they may often receive less for their company than it is worth, and they can easily be overwhelmed by the extensive details involved in transferring or selling a business. Being proactive means you can be assured a smooth transition, so remember to implement these important aspects of an exit plan:

A business valuation

Every successful exit strategy begins with knowing the value of your business, in which case a business valuation is essential. The process includes examining aspects such as:

• Tax returns
• Financial statements from the last three to five years
• Equipment lists with their costs
• Historical analysis of the company’s performance
• Examination of how the company appears to be trending
• Income-generating ability of the business
• Overall financial performance

Listing, promoting and marketing your business for sale

Listing a business for sale is a delicate process. You don’t want current clients to be concerned about your ability to meet their needs, and confidentiality is of utmost importance. Therefore, it’s best to deal with a certified business broker like CBB. We’ve helped thousands of business owners develop and implement a successful exit strategy. In addition, we also have a large buyer database and resources available to assist you.

Screening potential buyers

It’s not enough to merely find a buyer for your business. You need evidence that the buyer is financially qualified to purchase your business and strategically placed to follow through on their intentions. It’s also vital that a confidentiality agreement is signed before the discussion process begins.

Screening buyers is a time-consuming process, and therefore, we field all the questions, evaluate them, and only contact you when a suitable potential buyer shows interest. We’ll also schedule showings and meetings at your convenience, serving as an efficient liaison for the entire process.

Consider how your business will continue operating during the process

When you’ve decided to exit your business, another important consideration is to ensure it operates smoothly while in transition. In addition, if you have a family business, selling may involve several company leaders also leaving. Therefore, you must be sure you have people trained to fill in these vacant positions until the sale is complete.

You want to be certain that operations continue to meet the needs of your current clients and that your inventory remains on schedule and up-to-date. The aspect of a seamless transition makes your company appealing to potential buyers.

Don’t try to do it alone

Exiting a business can affect hundreds—maybe even thousands—of employees and clients. This experience is much too significant to undertake without a team of experienced professionals. You worked with business advisors and financial planners when you began your business, so why wouldn’t you work with an equally important team when selling it?

Planning is the cornerstone of building and exiting a business

There’s an old adage that many attribute to Benjamin Franklin: Failing to plan means planning to fail. Even if you’ve just started your business, it’s necessary to start planning now for a successful exit strategy later. When you are ready to leave, you can maximize profit and minimize headaches.

The profit from selling your business is largely dependent upon a solid business exit strategy and the quality of the team in place to help you get there. For more than 40 years, CBB has been the firm of choice for business owners in the Greater Houston Metropolitan Area in Texas.

Contact us so we can start working on your exit strategy and guide you toward the next phase of your journey.