Someday the day will come when you will want to exit your company, for better or worse. Disposing of your company can be challenging! If done properly it can create great financial opportunity for you and your family, allowing for other options in life, especially during retirement.
However, if your business exit strategy is not effectively planned, the business, which has given you a comfortable living, may turn out to be worthless. At the very least, you will be liquidating assets to take care of final debts and obligations.
Without a detailed plan you may not maximize the best potential price for your company. Between the highest and the lowest potential value, many elements will decide which side of the ledger you will fall on. Elements such as; a trained middle management group, systems, value drivers, culture of the company, consistent cash flow, profitability, and equity growth, are just a few elements that can lead to an excellent or bad sale.
THE SUBJECT THAT IS RARELY MENTIONED!
Unfortunately, for most business owners, the idea of exiting their business is rarely considered until the time has come. It most cases, the key planning elements of obtaining the best potential value of the business has been lost because there is a lack of time to implement them. Most business owners know that in order to keep their business running profitably, like a well-oiled machine, they have to stay focused on the task at hand, always thinking the future will take care of itself as long as the business is profitable. However, that is not necessarily the case in many situations. Also, when owners started their business, they had a place to go, a paycheck and a position, not ever thinking about the end game until the time comes when the end game is staring them in the face. Continue reading “The Final Act! The Day Will Come – Part 1”