In a recent workshop that CRR hosted, I joined several industry-leading experts to walk our clients through the process of selling their business—from tax, legal, marketing, and financial planning perspectives.
For those of you who weren't able to attend, I've summarized a few of the key discussion points that came up during the workshop.
Differentiate Yourself.As an increasing number of baby boomers reach retirement age, more businesses are likely to be going up for sale in the coming years. To stand out from the pack, you'll need to differentiate your business to appeal to potential buyers as the best option.
Know What You Want.Do you want all cash upfront, or would you be willing to take earn-out payments? Do you envision yourself staying on in a management capacity after the sale? What's the bottom number that you're willing to accept? Make a list of any stipulations that are critical to the sale, and then rank those in terms of importance. This list will give you a great starting point when it comes time to negotiate.
Lock In Key Employees.Buyers are likely as interested in your key staff as they are in your business. Lock in key employees prior to closing the deal by offering incentives, like phantom stock plans and length of tenure bonuses. Non-solicitation and non-compete contracts are also a must.
Contracts are King.When it comes to your suppliers and vendors, handshake deals make buyers nervous. Be sure to get contracts in place with your key partners prior to negotiating a deal.
For more tips, download: Exit Strategy 101: An Introductory Guide to Selling Your Business.
If you have any questions, or are thinking of selling your business, I'm happy to walk you through the process. Leave a comment below, or contact me directly anytime.