Why have an exit strategy when selling your business?
Why have an exit strategy when selling your business?
There are a few common types of exit strategies that entrepreneurs use to cash out of their businesses and move on.
Some go the M&A route where they sell their business to a larger business, confident that their company’s new owners are experienced enough to take good care of it. Other business owners prefer to sell to a business partner or even employees of the company. Many business owners wait until their company goes public, then step back into a board member role and collect on the dividends of their stock shares.
Nevertheless, it’s important to have an exit strategy before you sell your business. Even if you’re not ready to sell your business right now, you should have an idea of when, if ever, you plan to exit your company.
Why you should have an exit strategy
Here are a few reasons why it’s important for business owners to have an exit strategy:
Allows you to plan ahead for the transition — There are a lot of moving parts involved in exiting a business. Building an exit strategy allows you and anyone else involved to plan for all the steps involved ahead of time.
Helps to protect the value of your business —Even though you’re leaving your business, you want to see it thrive after you’re no longer in charge. After all, you put your blood, sweat and tears into it! Building an exit strategy ensures that your successors understand every aspect of running your business so they are able to care for it just as well as you did.
Aids in retirement planning — Maybe your plan is to leave your business when you retire. If that’s the case, planning out your exit strategy will help you to plan financially for your retirement years. You’ll get a business appraisal during the exit strategy planning process, giving you an idea of how much you can expect to earn after you leave. Also, you can plan for taxes and consult a tax professional on how to minimize your tax burden after the sale.
Lion Business Brokers can help you plan your exit strategy
Every business is different, and every business owner wants different things from selling their business. Lion Business Brokers will work with you to help you plan, negotiate and execute your exit strategy so you get exactly what you’re looking for. Learn more about our seller representation services today.
Why have an exit strategy when selling your business?
There are a few common types of exit strategies that entrepreneurs use to cash out of their businesses and move on.
Some go the M&A route where they sell their business to a larger business, confident that their company’s new owners are experienced enough to take good care of it. Other business owners prefer to sell to a business partner or even employees of the company. Many business owners wait until their company goes public, then step back into a board member role and collect on the dividends of their stock shares.
Nevertheless, it’s important to have an exit strategy before you sell your business. Even if you’re not ready to sell your business right now, you should have an idea of when, if ever, you plan to exit your company.
Why you should have an exit strategy
Here are a few reasons why it’s important for business owners to have an exit strategy:
Lion Business Brokers can help you plan your exit strategy
Every business is different, and every business owner wants different things from selling their business. Lion Business Brokers will work with you to help you plan, negotiate and execute your exit strategy so you get exactly what you’re looking for. Learn more about our seller representation services today.
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