How to Write a Business Exit Strategy
Any business broker Laguna Niguel will tell you that business owners who write their business exit strategy in advance are more likely to sell quickly and at a higher valuation and within more favorable circumstances. But how do you write a good business exit strategy? At So-Cal Business Brokers we have the team you need to write a great business exit strategy. We help you write your own story and ending. However, before you start writing there are a couple of things you need to understand.
Selling any business doesn’t happen overnight
Every business broker Laguna Niguel will let you know that simply deciding to sell does not make it so. The sale process takes time. As you write your business exit strategy, you need to write in enough time to start the process. You need to give yourself ample time to get everything in order and allow your firm to be put on the market and sell.
Books and records
Another important thing you have to do as you write your story is to keep up with your books and record keeping. Buyers will want to see 2 to 3 years of your profit and loss statements, tax returns and balance sheets. These records help present as well as clarify the financial position of your company. If any substantial expenses have been run through your business, recasting financials can provide an accurate picture of your business finances.
Call in the professionals
The worst mistake you can make when writing your exit strategy is to relying solely on your own research. You need to ask for expert help. At So-Cal Business Brokers we have the team you need to get everything in order. Our in-house accountants will let you know if your financial documents have a problem and will help review and organize your records. We will also be able to let you know if you neglected any document. Our business broker Laguna Niguel, on the other hand, will give you feedback and plan for getting the business ready to sell.
Strengths and deficiencies of your business
Your business exit strategy should include the strengths and weaknesses of your business. Now is the best time to work on the weaknesses of your business. The idea is to ensure the new owner will be able to step into your business and not worry about the absence of the previous owner.
Other things you need to do is understand your economic concentrations, timing as well as what you are willing to do to sell your business.
If you are interested in discussing how to get your business ready for sale and choose your own story schedule a complimentary consultation with So-Cal Business Brokers today. We will guide you through the process.