Ready to sell your business, but not sure how to go about doing it? Naples News has a few tips that will help you get your exit strategy mapped out.
There are several methods to consider. You can slowly downsize, liquidate inventory and withdraw as much cash as possible over a period of several years. This method usually entails letting good people go and that can be a tough decision in this economy.
You can sell to a friendly competitor whose methods of operation and clientele is similar to yours. You can also begin conversations with trusted employees who have expressed an interest. In both instances the buyers are familiar with the operation and have a good sense of its growth potential.
A typical buyout usually entails a third party appraisal of the business assets, customer base, and good will. Often the seller requires a cash down payment and takes back a note for the balance from the buyer, payable over time, with interest. All cash deals are rare and usually result in a generous discount to the buyer.
Sticking one’s head in the sand like an ostrich won’t cut it. The sooner you begin the thought process the better the end result. The volunteer counselors at SCORE Naples [or a SCORE near you] can offer guidance and resources to help you make the right decisions.
Photo by Diana Parkhouse