7 Steps for Business Owners Considering the Sale of Their Small Business
Selling the business you built is one of the most significant financial and personal moments of your life. It is the culmination of your vision, effort, and leadership. Whether you have dedicated decades to its growth or are closing a chapter on your latest startup, a strategic approach to the sale is essential. A well-planned process can make a substantial difference in the final outcome, both financially and personally.
Near or far, here are 7 fundamentals to consider when the timing is right for you.
7 Steps for a Strategic Business Exit
Explore the 7 key steps to a successful transition.
Before evaluating any offers, the first step is to establish what a successful sale means to you. Most owners have a clear sale price goal for the transaction, but knowing your intangible goals can be equally as important.
Every business sale is unique, and your exit strategy must be tailored to your specific goals. There isn't a universal playbook; the objective is to design the right solution for your circumstances.
The sale of your business is more than a financial transaction; it represents a major life transition. Thinking strategically about what comes next can make this change feel more seamless and fulfilling.
I focus on tax planning and optimization because they are crucial aspects to consider when managing your finances. By strategizing efficient ways to minimize tax liabilities and maximize savings, my clients can plan for the future. Additionally, I also help clients with retirement planning, Investment management, and cash flow planning because they are essential for maintaining a healthy financial balance.
No matter what stage of the sales process you are in, thinking about the way your assets are structured can unlock incremental value to your wealth. Proactive estate and tax planning are critical for maximizing the proceeds from the sale. Are you aware of the pre-exit estate and wealth transfer planning that needs to be in place early to take advantage of tax strategies?
Developing a holistic financial plan that can serve as your roadmap before, during, and after the sale is essential. Finding a financial advisor who will help you integrate investments, tax strategies, insurance, and gifting plans to ensure they are all aligned with your overarching goals is essential.
Considering how a future transaction will impact each member of your family creates an opportunity to mitigate potential conflicts and disputes before they occur. This starts with aligning with any family members who are currently involved in your business to understand their long-term desires and qualifications for staying in the business.
Knowing how to say no. No matter what wealth is generated from a transaction, it’s important for business owners to think about how relationships may change after a transaction.
