With all that we try to fit into every day, setting aside the time for the truly important and meaningful activities can be/is difficult. Planning and good intentions go by the wayside. Yet not preparing for the sale of our business could cost us the very lifestyle we have worked so hard to build. Isn't it time you start thinking about the life you want when you leave your business?
My wife, Gayle, and I recently celebrated our 35th wedding anniversary. We're both strong-minded but we're careful not to let our differences turn into a contest of wills, where one "wins" and the other "loses".
As you read in part one of selling a business: what is your business worth, a seller’s price expectation needs to be in line with market reality. Most financial statements of small businesses are prepared to minimize the tax burden for the company and its owners. To reflect the company’s true earnings, we need to recast/normalize the balance sheet and income (profit and loss) statement.
If beauty is in the eye of the beholder, then the worth of a business lies in the eye of the market. For the market is really what decides the price an owner will get for their business when they go to sell – the scenario most have in mind when they ask what their business is worth.
In part one of this post, we explored how business brokers bring buyers and and sellers together, providing the all-important expertise to bring the deal to a conclusion that works for both. Here are some takeaway points specific to each party.
Nike's “just do it” slogan has become part of our popular culture. As business brokers, though, we'd want to add another word: just do it right! Dealing with and overcoming challenges is almost second nature for most small business owners. They know how to build and run their businesses to make them successful. But they don't how to sell one.
