Norm Brodsky, a columnist for the website Inc.com, has a great advice for business owners thinking about when to prepare for your exit strategy: do it immediately – and build your company as if it is going to be sold, even if you don’t intend to sell it.
Mr. Brodsky reasons that when you look at your business the way a buyer would, “you notice things you might otherwise ignore, including improvements you can make and best practices you can adopt.”
He went on to add that building to sell “will lead you to ask a lot of questions you should be asking anyway but don’t because you’re focused on the day-to-day, month-to-month challenges of running a company.”
It does make complete sense to follow Mr. Brodsky’s advice. Selling the company is one of the most common exit strategies, and can be the most financially rewarding. The money made from the sale can be used as a significant source of your retirement fund, or for other investments in the future. The challenge is to build a business with great value that will attract good purchase offers from prospective buyers, at any point during the life of the business. You do not want to be caught ill-prepared for when circumstances call for you to sell the company, that might force you to just settle for the first offer that comes to the table.
To avoid this scenario, we recommend that you get a business valuation. It is one of the most neglected, yet very necessary aspects of running a business. A business valuation determines how healthy the company is, and assesses the different aspects of the business that drive its value. It also points out the areas that affect the value of the business negatively, which can then be recommended upon to mitigate its possible effect on the valuation. This would ultimately benefit the company’s estimated worth once it goes to market.
eBusinessAppraisals.com has over two decades of advising and deal-making experience in middle-market businesses. We have focused our expertise on value-enhancement techniques designed to maximize the value of businesses, and meet the exit strategy objectives of its owners.
Prepare your business for your exit strategy. Commit to a business valuation and come out confident, ready to face the market!
Source: http://www.inc.com/magazine/20110201/planning-to-exit.htmlBlog business valuation, business-exit, company-valuation, exit strategy, exit-plan, sell my business, sell-business, valuation