Many entrepreneurs tell themselves they’ll have plenty of time to prepare their business for sale when the time comes… wrong!
Selling a business goes beyond financial and tax considerations.
Several questions arise:
- As an entrepreneur, am I mentally prepared to sell my business? Do I have a plan to occupy my time once my business has been sold?
- Do I have a vision of what I want for the long-term future of my business? For the future of my employees?
- Is my business profitable? Is it verifiable in the financial statements?
- Do I know the value of my business? At what price?
- Is all the paperwork in order?
- Is there a contingency plan to keep the business running even if the president is absent?
- As an entrepreneur, how much time do I have to complete the transaction?
The answers to these questions can make the difference between a successful transaction and a “fire sale”. Preparing a business for a transaction can be time-consuming: putting the right organizational structure in place, establishing value and expected price, producing financial statements that demonstrate the company’s financial health, etc.
Entrepreneurs should always bear in mind that a business can be sold at any time…
- An unsolicited offer to buy (strategic buyer)
- A sudden event in the president’s life or entourage: illness, death of a close friend, etc.
- Major change in the market, in technology…
Entrepreneurs… get ready now! All you must do is choose the right moment to trigger the process.