Want to sell your business?
I’ve heard this refrain before. From business owners with revenues in 6-figures to business owners with revenues in 9-figures. Asked if they want to sell their business, often they reply yes, why sure. In ten or so years.
Once ten or so years comes and goes, they find they are not ready because they haven’t done the planning necessary to maximize value for themselves or potential purchasers. They only have the dream of being out of it.
Well, like tax planning, selling a business requires a lot planning. Planning done so over several previous years. Necessary are thought and purpose.
Businesses usually sell for some kind of multiple of either revenue or net profit. This multiple varies widely, depending upon the type of business, the market cycle, the type and value of assets, tax implications and objectives, financing terms, and on and on.
Three stories about selling a business: Read More