Chapter 10

Making Sure You’re Ready to Sell

In This Chapter

Considering the importance of timing

Pinning down your motivation to sell

Finding ways to boost value in advance of a sale

Choosing the type of transaction

Timing is everything when it comes to a purchase or a sale of a company. This fact is especially true for sellers. The best possibilities for a higher valuation on the sale of a company come from planning in advance.

In reality, relatively few people have an exit plan in place for a company that they’ve either bought or worked hard to start years before. But exit planning is essential. You should do this planning three to five years in advance, and valuation is an important step in that process. Unless you know the value of your company inside and out — or the steps it will take to improve that value — you’ll have a tough job making a convincing sale.

Preparation is the stuff of business opportunity. It means finding out everything possible about a business’s operations and the specific markets you’re interested in so you can grab opportunities when they happen. It means laying in the financial foundation — cash savings, liquid investments, or attractive financing — to afford those opportunities at the moment they happen.

Finally, it means conferring with particular experts who are familiar with your business plans, your finances, and your personal financial goals to make sure the opportunities you go after are absolutely the best fit for you. This chapter gives you ...

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