When we started our business, we didn’t think about an exit strategy. In fact, three or four years into it a friend asked us about our exit strategy and our answer was, “we don’t have one.”
Ultimately our exit occurred when a customer, a large public firm, bought our company. During the due diligence process we discovered that we had made many good decisions that helped the process, and a few that hindered it. In any case, it would have been helpful if we had known how to set up our company to sell.
It probably goes without saying, it is important to keep good books. We were fortunate since one of us has an accounting background. However, it goes a step beyond just keeping the books. Make sure you are using GAAP (Generally Accepted Accounting Principles). There are multiple ways to recognize revenue, and this was one area we had to hire our accounting firm to adjust.
Read more at:
How to prepare your company to sell - Phoenix Business Journal:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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