Starting and successfully growing a business is no small feat, but it’s when, not if it’s in your best interest to exit. Goals depend on exit motivations. Motivation: Selling as a going concern and moving on? Value is as much about the visible realities as it is about the business climate, timing and risk tolerance. […]
Starting and successfully growing a business is no small feat, but it’s when, not if it’s in your best interest to exit. Goals depend on exit motivations.Motivation: Selling as a going concern and moving on?Value is as much about the visible realities as it is about the business climate, timing and risk tolerance. But are you really ready to move on entirely?Motivation: Retirement while guiding succession. Handing the business over in stages to a family member or trusted group or staff allows you to exit the business without selling it entirely — a good choice when you value the life satisfaction that comes from remaining involved. But finding the balance that makes sense both to you and the good of the order of the new team can be a challenge. Get this right and everyone can win more than money can buy. Sometimes, it’s just not realistic.Motivation: Liquidation.This starts with an objective appraisal of your business assets and relationships taken as parts. Having an accountant on board early will limit time-consuming and expensive tax issues.Start planning three to five years ahead and prepare your records for review.Looming real opportunity and more distant risk drives value. You know you’ve got it right when it looks so great you wonder why you’re selling it at all.If you were the buyer, what would you need to see to be confident enough to offer a higher price?Reach out to SCORE for help.You don’t get ‘do overs’ in this! Navigating the often emotional human dimensions can be more challenging than ‘the numbers’ professional accountants can create. Sign up at SCORE.org to connect with volunteer expert mentors who have ‘been there,’ community people trained to offer you confidential guidance, perspective and connections.Harry G. Coin is the community relations volunteer for QC SCORE. For more information on the local SCORE chapter, contact a SCORE counselor at score.org/quadcities.
