Most business owners rely on selling their business to ensure a comfortable retirement. The pressure is then very high to get the best price possible. Homeowners can sometimes find themselves in shock by noting that the market value of their business is lower than they would have liked.
This is often the case since most business owners overestimate the value of their business. In order not to be in this situation, it is super important to do a pre-sale planning. Here are 4 steps to ensure the best planning for the sale of your business:
1. Obtain an objective evaluation of the value of your business.
A business broker will make a complete evaluation of the value of your business while identifying areas where you can focus your improvement efforts.
2. Compare this value to what you think you need for retirement.
If the value of your business is less than what you want, planning ahead will allow you to put in place the actions required to increase the value of your business or otherwise adjust your retirement expectations.
3. Create a succession plan to facilitate the transition process.
Who will replace you after your departure? If you are vital to the company’s core business, its value will degrade too quickly once you are gone. That’s why it’s important to invest in your employees and ensure that they are properly trained until you leave.
4. Focus on improving business performance.
Processes and procedures are essential to the proper functioning of a business. We must not forget how crucial they are to adding value. From staffing to equipment upgrades, you need to find ways to make your business more attractive to buyers.
That is why planning ahead of time the sale of your company will lead to the best results and conditions for you.
For advice in the planning and selling process of your business, contact our experts. We can help you maximize the value of your business before the sale.