The life of a business owner is both rewarding and exhausting. All business owners know that to run a successful company you need to be a great marketer, control your costs and deliver unbelievable customer service. However, when it comes time to exit your business, lack of preplanning and strategizing leave even the best owners hostage to poor financials and bottom-feeding buyers. Creating and implementing an exit strategy for your business can be the difference between taking a long vacation or retiring in the lap of luxury after the closing! As a business owner, you deserve to achieve the highest market price for your company. Begin planning your exit strategy with the same amount of thought and detail that you plan your customer service strategy or craft your marketing plan. In doing so, you will be able to walk away from your company knowing that you created something bigger than yourself, and have the financial stability to provide for the next stage of your life.
But what if you don't plan? What might your fate be? Instead of a planned exit, you may be forced to exit your business by one of the following scenarios:
1. Closing the business due to declining revenues
2. Being unprepared for an unsolicited offer from a competitor
3. Succession without adequate tax planning
4. Losing the business due to an accident, grave illness, or even death of a partner or owner
There are a other exit scenarios in addition to the four listed above, such as a merger, private equity investor and an Employee Stock Option Plan (ESOP) and a management buyout, however, the expertise I bring to you is a planned sale to a third party buyer (ka-ching!).
Next time... Closing the business versus a sale...
Julie Gordon White, Broker BlueKey Business Brokerage 510.812.2233 cell
www.bluekeybma.com www.pinkbizbroker.blogspot.com
