Selling your business? 4 ways to maximize your personal and financial return

We’re intrigued by Tensie Homan’s article, “When Selecting a Buyer for Your Business, Don’t Just Consider Price” in Entrepreneur Magazine. She offers some great insights into considerations when selling a business.  Critical to your long term happiness is considering more than just the transaction.  Looking at a sale in a vaccum is a surefire path to problems later on.

Ms. Homan lays out 4 key considerations for maximizing your return (both personal and financial):

  1. Have a plan for what comes next
  2. Create realistic value expectations
  3. Make the due diligence process easy for a buyer
  4. Go in with eyes open

These are all great points, and I think they all can be boiled down to “have a plan.”  Great advice for most things in life.

Not to be picky, but let’s put a finer point on this:  selling a business is a process, not a single event.  Approaching your sale like a singular event sets you up for losing value in the actual sale, and potentially foregoing some happiness in the golden years.  So let’s revamp Ms. Homan’s points:

Have a Plan for What Comes First.  

Go into the sale knowing 1) what your business is worth, and 2) how much you need to live comfortably post-closing (whether you are retiring to catch fish and play golf, or looking to fund your next startup, this advice still holds).

Have a Team to Facilitate the Sale Process.

Entrepreneurs can do it all.  You can learn how to sell a business.  Don’t be tempted.  Draft the right team: broker / intermediary, attorney / CPA.  Rely on THESE folks to find the right buyer, make diligence easy, and protect your interests while getting to a closing.

Selling a business should be the culmination of your life’s work.  By treating a sale as a process rather than an event, and being proactive throughout, you’re much more likely to experiences a successful exit on your preferred terms.

Recent Posts:

Ready to Get Started?

Name(Required)
Hidden
Brand

Browse Blog by Topic:

Subscribe:

Hidden
Brand
This field is for validation purposes and should be left unchanged.

Follow Us on Social Media

Subscribe to our blog to stay up to date on matters relating to valuation, M&A, and entrepreneurship.

Hidden
Brand
This field is for validation purposes and should be left unchanged.

Get a thorough and accurate business valuation, tailored to your needs, in weeks—not months.