heavho.com » Blog Archive » Selling A Company Myth: Its All About The Money

heavho.com » Blog Archive » Selling A Company Myth: Its All About The Money

June 7, 2010



Selling an organization raises important questions. What outcome would you like from the sale of your company? How does that impact the sales method? Also, what are you going to work it out? It is a myth to think it’s simply concerning the money.

Your goals, once given the time to manifest, are broader than monetary ones, and go farther than simply you. What are the goals for everybody: you, your family, your business, your staff, and other stakeholders? As we have frequently said to our clients and colleagues, your business is not just a paycheck; it is a well spring of pride, purpose and relationships. It hasn’t been simply about the cash when you worked there, and it won’t be after you sell a company.

To successfully sell a company means a important amendment on multiple levels. Transitioning away from the business could be a journey from the known to the unknown, and it should be treated with more than just a passing thought. What is your destination? What do you hope to achieve by selling ? Who wants to be part of this planning method? Understanding your business, monetary, and private goals is crucial to your sale having a successful outcome as you define success.

Typically, however, business owners outline their objectives solely financially—getting the highest worth with the bottom taxes at closing, or perhaps setting up a future income stream. Making a dollar goal is comparatively simple, with all due respect of the art and science of business valuation. Another goal might be to sell a piece of your business or all of it. Or it might be to retain management and finance growth through recapitalization.

You do need to think long and hard when assessing your money needs, risk tolerance, and many connected matters. What are the requirements of other stakeholders and family members? Are they on board with the concept of the business being sold? Is it important to cash out at closing, or would you concentrate on keeping a small investment within the newly sold company? What is realistic? Everybody incorporates a financial dream, and whether the market supports yours can be revealed over time.

Business owners have told us time and again that their goals are larger than money. Cash is vitalto them, but it is not the only thing. Simply as their business is not just cash to them, therefore does its sale. They need it done right, however struggle to explain what the meaning is and what their goals are.

Clients we’ve worked with usually initially outline the sale of their business in terms of money as a result of they haven’t taken time to think more broadly or don’t apprehend how. When we work with them to assume about the large image: the best-case picture of your future—meaningful engagement with the planet through work, family, activities, charities, adventures, non secular and community commitment—once sold.

Selling is, after all, an opportunity to redefine your life. It is not just the money. What can the new you be? What will the new you do? We’ll define helpful questions in future articles to steer you thru this process of self-discovery.

Answers to these queries will effect the type of buyer and transaction you request, and become the groundwork for your selling strategy. A smart place to begin out is by knowing your definition of success – in terms broader than cash – that works for you.

I invite you to use these concepts to form your best-life business exit strategy.



Marian Cook is a highly sought after business transition expert and speaker with over 25 years experience helping business owners design their best-life exit strategy, and improve their business performance and valuation. She is the co-author of “Selling Your Business For More: Maximizing Returns For You, Your Family and Your Business” (published by Macmillan). If you are ready to sell a business and jump-start your business sale process, connect with Marian via her free tips, articles, checklists and blog at Business Transition Experts.