Sell Distribution Business – How to Prepare an Exit Strategy

Do you want to sell distribution business someday? If yes then you need to prepare an exit strategy during every stage of your business as it demonstrates financial strengths or long-term viability. The best way to prepare an exit strategy is to already have one. Our team at So-Cal Business Brokers can help with this. We have lots of experience selling businesses like yours and a success rate of 90+%. Our input will guarantee that you end up with a foolproof exit strategy that accounts for everything. Give us a call now to learn more.

There are so many situations that may force you to sell. The unexpected factors include old age, burnout, lack of interest running the business, and competitive threat and so on. Before these unforeseen situations force you to sell distribution business, you need to ensure that you already have an exit strategy in place. At the bare minimum your exit strategy will need these three components.  

Succession plan

The purpose of this plan is to know who will take over the business’ day-to-day operations when you leave. This can be an individual or a team. You can appoint a trusted employee to take over operations or simply train a team to take over your responsibilities. An internal employee is better because he or she understands all the skeletons in your closet. By doing this, buyers will be more inclined to purchase your business because the business is not over dependent on you.

Contingency plan

Another important thing you will have to do is identify the pitfalls and pain points buyers might experience when they take over. You also need to discuss ways on how to manage these pitfalls. Buyers don’t want surprises. You need to address these pain points objectively so that you are more credible to buyers as you sell distribution business. Demonstrate proper foresight for these problems so that they don’t surprise you or the buyer. Our team will help with this following a business valuation.

Budget, accounting and taxes

The third most important thing to do is know precisely how much you will make so that you can cover your own finances. Here you have to consider things like how much of your proceeds you expect to ‘roll over’ in the new deal and how aspects of the deal structure will impact taxes.

As mentioned earlier, So-Cal Business Brokers has lots of experience selling businesses like yours. We don’t just know how to market and find the right buyers but also how to get the business ready for sale and prepare a great exit strategy. Contact us today and take advantage of our free consultation. We are always happy to help you in every way we can.

Sell Distribution Business