Capture The value
All businesses can be sold contrary to the opinion that only a small percentage of businesses put up for sale will ever be sold. Most business owners do not sell their business due to the fact there ill-prepared for the sales process and give up on trying to sell their business. Any business can be sold, but at a price that is not what the business owner expects or needs.
Most business owners do not know what their business is worth or what they are selling when they are ready to sell their business. The important thing a business owner should define is how much money they need once they are ready to sell their business. This amount is not the sales price but is the net proceeds after all transaction cost and other intangible consideration.
A business owner should always consider bringing in an independent advisor to help them decide which is the best way to sell their business. This advisor should be someone who has worked with business owners objectively determining the best plan to transition out of the business. A business owner should be careful not to select someone who has a vested interest in the sale of the business.
There is no correct answer as to how long it takes to sell a business. There are multiple considerations that should be taken into account in determining the timing of the sale. Due to the different steps that must be taken to consummate a sale, it can take as little as six months to as long as five years.
Due to various factors, business owners often find they cannot get the net proceeds they need to transition out of their business and enjoy life after business. This can occur for many reasons, some of which are direct result of the business and some of which have to do with macro events that are beyond the business owner’s control. If the business owner finds they are not satisfied with the offers for their business, it is always advised that the business owner not sell the business until they find the right buyer at the right time.
You’ll retire, all right. Question is: with what? Make sure the business you are in now will support you later.