Asking questions is the first
step towards your future success
There are many reasons why an entrepreneur decides to sell their business, and it’s always best to consider all your options and possibilities before making this decision. Have you prepared your exit strategy? When would be the best time to sell your business? Will you gain the best possible price from a sale? After all, you have invested years building your business, so you’ll want to maximise your outcome from an exit.
Who should I sell my business to?
There are various different types of exit strategy you may want to consider. Will you sell your business to a larger company or to one of your competitors? Is selling to a private equity firm or investor an option? Do you want to pass it on to a family member or sell your stake and let one of your business partners take over? Alternatively, are you considering to arrange for your employees or managers to buy you out?
What will I need to consider after I’ve sold?
It’s easier to accept selling your business if you have prepared for it and are committed to exiting a year or two before you actually sell. But once you sell your business, these are questions you need to ask yourself. How much income will your money need to earn each year? What investment portfolio will you need to build that will meet your needs? What is the impact of a sale on your tax position?
How will my life change once I have exited?
When selling your business, it’s natural to think of other major life changes you may want to make. After years of intense focus on building your business, it may feel strange to suddenly be open to new possibilities. There is life after selling your business, and for an entrepreneur it is a life filled with even larger and more meaningful goals yet to be accomplished. What will the next chapter in your future look like?
Start planning your sale sooner rather than later
Selling your business can be a challenging task, so it’s important to get it right. Some entrepreneurs often wait until the last minute to make hard decisions about selling their business. At Coleridge Capital, we know that a clear plan takes time to develop, but can ensure that you’ll get the full value for your business. When is it time to start planning your sale? It’s never too early.
