At some point, you as a business owner will explore the possibility of selling your business for variety of reasons. It can retirement, health reasons, fatigue, or pursue other goals. Exit planning is the complete strategy for selling a company.
Please watch the YouTube video here – https://youtu.be/5bkRHW3lKiE
It involves several factors, like what are your personal goals, what are the goals for the company the financials of the company, legal, tax, and how to safely exit while maximizing your enterprise value.
Now this exit planning should not take place when you are ready to sell. This planning needs to take place way before that. This will allow the business owner peace of mind that everything is already taken care of. 75% of the business owners do not have any exit plan in place, which is eye opening when you consider that 80% of the business owners have their net worth tied to their business.
In a nutshell, you as a business owner should start today and I mean right now to start this exit planning. To achieve the highest enterprise value, you should start to focus on the financials of the business and make sure they are clean year over year, pay as much taxes as possible so that the business is financeable, invest in your employees and groom one or two individuals to run your company so that the company is not owner dependent, diversify your business by ways of clients/products/distribution channels to avoid concentration risk, solidify contracts in writing for at least 2 years on an auto renewal. This is obviously not the entire list of exit planning as each industry/business has their own exit planning requirements. Consult with us today to learn more.
Please visit https://gillagency.co/how-to-sell-my-business-a-step-by-step-guide which will provide you with a guideline on how to plan your exit planning,