So, you want to sell your business. For most of us, it is a once in a lifetime event. There is no reason to expect that you should know the intricacies of a transaction. That is why it is oh so important to have good advisers help walk you through the process.
I recently saw the movie Founder, the story of Ray Kroc and McDonald’s. Most of us know the basics of the story. I consider it required viewing for anyone wanting to scale their business. Before Ray Kroc got on the scene, the McDonald brothers made a huge investment of time and energy perfecting the simplicity and efficiency of their business.
The Value Gap, have you ever heard of it? Well, if you are thinking of selling your business in the next few years, it is a term that you should get familiar with.
Owners want to sell their businesses for a variety of reasons – some want to retire and others are ready to move on to something else. Most owners ask – “is now a good time to sell?” Not surprisingly, the answer is, “it depends”.
First, what does it mean to scale your business, and how does it differ from growing your business?
Consider scaling a business:
“growing sales at an exponential rate while only adding costs incrementally by developing a replicable system for delivering goods and services.”
with simply growing a business:
“increasing sales coupled with increasing costs with little improvement on profit margins.”
The difference is clear
A couple of potential clients have called lately wanting to sell their business. Their timing is anywhere from tomorrow to the next couple of years. Inevitably the question comes up: “What have you done to get ready?” I can almost see the “deer in the headlights” look over the phone.
When your business is at stake, it is best to heed the adage: “Hope for the best, plan for the worst”
If you are a co-owner of a business, preparing for the unknown is best achieved through a buy-sell agreement. Events that trigger…..
Getting divorced? Be forewarned: Hiring your own financial adviser—right away—can be the difference between a workable settlement and disaster.
Most business owners and leaders are happy to see top line revenue growth. But some revenue is better cause for celebration than others.
You started your business 10, 20 or even 30 years ago. It has been good to you. You’ve built it from infancy, fed it, grew it and, in turn it has provided you a comfortable lifestyle.
But, you’re done, or you want to be done. You are ready for the good life that retirement promises. But there is only one catch – there is no playbook for retiring from your own business.
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