Never Too Early To Prepare

Written by James Sanders

On many occasions, I am approached by clients who are thinking about the transition of their business but don’t really know when or where to start.  The when part should always be top of mind.  Every day, a business owner should be thinking about how they can enhance the value of their business.  You never know when a potential acquiror could come knocking on your door. 

As to where to start, there is really no perfect answer.  I thought the list below would be good to ponder: 

• Identify why you want to sell your business and who potential acquirors would be;
• Determine the value of your business (consider hiring a business valuation expert);
• Decide whether you want to hire a broker or negotiate the deal yourself;
• Get your books in order; understand the true profitability of your business;
• Organize your paperwork (contracts, formation documents; miscellaneous legal documents, etc.).

While you are thinking through the items above, please consider involving your professional business advisors.  They have been through this process before and can assist with the information gathering and preparation.  A sale process could take days, months and/or even years.  As long as you are focused and organized, you should be ready to execute when the time is right.   Next week, we will discuss the ways to exit.