When You Sell Your Business Will You Be Pleasantly Surprised – Or Not?
Selling a business is typically one of the biggest financial decisions in an entrepreneur’s life.
In general, a properly structured business should sell for 3-5 times gross revenues. That said there are a number of critical questions that ultimately determine whether you will realize the number that you want:
- Is your business named after you, or totally identified with you?
- Do you have the right people in the right positions to show a prospective buyer that the business can continue to function without you?
- Do you have the right financials – at least five years of Balance Sheets and Profit and Loss Statements – to enable a buyer to feel confident they are making the right decision?
If you cannot answer all three of these questions correctly, you may be very unpleasantly surprised when you decide to put your business up for sale.
Don’t Wait
Positioning a business for sale requires careful planning and timing. Especially if you answered “yes” to any of these questions, there will be significant work required to rebrand your business, reposition your people and hire new talent and ensure that you have the right financials to present to a perspective buyer.
It is estimated that in the next 10 years, fully 60% of entrepreneurial businesses in this country will be on the block as many Americans reach retirement age and look to cash out of the businesses they have built.
Will you be one of the people who will transition successfully into retirement or will you have to keep working indefinitely because you can’t sell your business for what you want or need, in order to enjoy your retirement years?
For a complimentary assessment to make sure your business valuation is successful simply click the link below to schedule your free consultation.
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