Top 9 Exit Planning Mistakes
March 7, 2017/
- When is the best time to sell? –I’m often asked when is the best time to sell? While there is no right answer here I recommend selling between January-Late summer. I get a lot of calls in the summer months and one of the first questions I’m asked is can you sell before peak? Sometimes we can, sometimes we strike a deal during the middle of peak and close out the first week in January.
- Being reactive –waiting for the right deal to come along, you need to be proactive in your exit strategy. Put yourself in the Buyers shoes for a moment here. Go ahead and fix the trucks up, keep up with the regular maintenance of the fleet, replace any broken equipment such as hand trucks and map books.
- Not considering all your options – you open up more Buyer opportunities when you offer Seller financing, SBA financing, and even staying on to work for the new owner for a period of time.
- Being distracted– do what you do best – run the company. Let us market your business and negotiate the best deal for you! We screen every Buyer to make sure they are qualified and ready to Buy.
- Not knowing your value– what is your business worth now? Do you have realistic expectations and will that provide enough for your venture?
- Where to next?– an important part of exit planning is answering that question. Another business? Retirement – and all the issues associated with that?
- Tax implications? – your accountant should be part of your team implementing your exit plan and protecting you. Make sure you schedule a meeting with your CPA before you sell your business! Ask them to prepare the necessary documents to show to potential Buyers.
- It’s not a DIY project!– to ensure the best result ensure you hire an experienced business broker with the expertise, resources, and marketing skills to explore all your options and attract the best buyers.
- It takes time – selling a business is much more complex than selling a house so allow plenty of time. Did you know on average it takes 6 months to a 1 year to sell your package delivery business? Full information has to be assembled, multi-pronged marketing strategies need to be implemented, legislative and tax implications need to be understood, and almost certainly there will be challenges to overcome.