Article Review: 75% of Owners Are Ready for Their Exits, But Their Businesses Aren’t | Axial

Article by John Brown, BEI | March 30, 2017

Key Takeaways:

• 75% of business owners answered yes to the question, "If a buyer offered you enough cash for your business to provide you with complete financial security, would you sell today?"
• Only 26% of surveyed owners believed they are ready to exit their businesses successfully. 
• Prepare your business for sale before you feel the need to exit.
• An exit plan provides you with flexibility, leverage, and negotiating power.

Determine the likely sale price of your business before you go to market.

• Business brokers will provide you with an estimate of your business’ value today, at no cost.  
• Make sure you hire a Certified Business Intermediary (CBI) or Certified Mergers & Acquisitions Professional (CMAP) to conduct the valuation. 
• If the value is insufficient for you to exit your business, begin planning to create sufficient value. 

Increase transferable value.

• Transferable value is what a business is worth to a buyer without the owner’s continued involvement. 
• If a business requires the owner’s presence to maintain and increase cash flow, the company, without the owner, has limited value. 
• If a business can continue without the owner, it has transferable value.
• I could take 5–10 years to create adequate value. 

Preparing your business for a sale before you prepare yourself positions you to sell your business when you want, for the money you need, and to the person you choose.

Article LINK

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com. To search for Florida Businesses for Sale: CLICK HERE