Business Exit Planning 101
Learn the basics of planning the sale of your business from an experienced Vancouver business coach. By putting the same care and attention into the selling of your business as you did building it, you're more likely to get a fair price.
Here are answers to some of the most common business sale questions:
When Should I Start Developing a Business Sale Plan?
The short answer is NOW.
Most transition plans take two to five years to implement. By planning early and updating your plan through time, you’ll increase the odds of finding a suitable successor, maximizing your selling price and leaving the new owners with a well-performing company.
What Are My Business Sale Options?
The three main business sale options are:
Passing the business to a successor (such as a family member or existing manager),
Transferring ownership through a management or employee buy-out, or
Selling to a third party.
The best arrangement for the sale of your business will depend on your goals, the nature of your business and many other factors.
When Should I Talk to a Business Coach?
By their very nature, business sales are complex. Not only do you need to have a solid understanding of your post-sale needs (especially if you plan to retire or start a new business) but also a realistic understanding of what your business is worth.
Generally, the earlier a professional business coach or advisor is brought into the process, the better.
How Much is My Business Worth?
The value of your business will vary depending on the type of valuation method used, such as book value, liquidation value, discounted cash flow, going concern, etc. More importantly, it will also vary depending on the strength of certain business value drivers, which reflect the overall health of your business. Business Value Drivers >>
When you’re ready to leave your business, it’s tempting to spend more time thinking about your post-transition plans than keeping earnings high or improving internal processes. But these are exactly the kinds of activities that will improve the value of your business (and increase your sale price) right up to the time of sale.
What are the Implications of Selling My Business?
Will there be a transfer of leadership as well as ownership?
How do I minimize my tax bill?
Financing for the successor (if applicable). What does the bank want to see?
Sale price allocation. Why is it important?
To fully understand all of the factors involved, talk to a Smart Exit business coach. Contact us >>
How Should I Prepare for My Business Sale?
You’ve already started by reading this article and educating yourself on the topic. Now, take a look at the other business sale resources >> on this site. Sign up to receive free business succession information Sign Up Form >> as it comes available.
We know the importance of privacy when selling your B.C. business. Contact our business coaches to speak directly — in strictest confidence — about your business succession challenges. Contact us >>