I want to sell my company… where do I start?

This is probably the most common and first question that anyone asks if they need to sell their business. Business owners sell for a variety of reasons and sometimes they are more compelling than others, such as death, divorce, burnout, or a partner dispute. Most often it is a case of planning for retirement. Whatever the reason, the first steps you should take are going to look the same.

A few key conversations need to happen. First, with yourself. Ask yourself why you want to sell, and why now? Knowing your motivations can help clarify whether it is truly the time to sell, or if there are other solutions to suit the situation better. If you are truly ready to sell, knowing your motivations can go a long way toward warding off the seller remorse that sometimes occurs and can derail a deal once an offer has been accepted and you are heading for the closing table.

Secondly, you are going to want to have a talk with any other partners or ownership stakeholders in the company. Make sure you are all on the same page. If you want to leave, it may be that another stakeholder or partner would be willing to purchase your portion of the company. If your partners are minority stakeholders, you will need their support for a smooth transition. This can be approached as future planning if you are concerned about their reactions. If you are in a situation involving some possible dispute, then a conversation with your attorney first would be a good idea.

Third, a conversation with an experienced and trusted Business Broker or M&A Advisor will save you a lot of time trying to understand the go to market process. An experienced, qualified Advisor can explain the steps, what to expect and how to plan. They will most often point out the first steps of planning for sale will be to establish value and determine whether you are going to get the return you desire. They can assist with valuation and determining what your business will most likely sell for given the current market conditions and how your business performs on a variety of value driving metrics. Expect at this stage to produce financial statements, tax returns, as well as balance sheets, real estate information, and a variety of other business information. During this time, you can also expect to be in conversations with your accountant regarding your financial statements and what to expect as far as taxes upon the sale of your business.

Proper planning is key to getting the type of return you want. A good Business Broker or M&A Advisor can help you with pre-planning in advance so that when the time comes you will be ready, and most importantly the business will be ready, to go to market and enjoy the return that you deserve for your hard work. And, they will answer that question for you… I want to sell my company, where do I start?

For Some more great tips, check out some of the great articles like this one from BizBuySell.com, one of the industries leading resources for buying or selling a business. 10 Expert Tips to Know Before Buying or Selling a Business (bizbuysell.com)

By Ralana D. Abraham-Miller, Managing Partner
XGO Business Brokers and Advisors
Email: Ralana.abraham@xgoadvisors.com
Phone: 317-245-4912
Book a call with Ralana Abraham-Miller  

Ralana is an almost 20-year veteran of the business brokerage industry, with vast experience in marketing and selling small to lower middle market businesses in the Midwestern, US. Ralana has been behind the desk in orchestrating comprehensive confidential go to market strategies as well as in the trenches with her clients as a Business Broker with more than a dozen successful deals to her credit. She is a passionate advocate for the businesses she represents and the entrepreneurs she is privileged to assist. Having been in a family business, she knows first hand the challenges, triumphs and pitfalls a business owner and their family experience.

In her role as Managing Director with XGO Business Brokers and Advisors, Ralana strives to bring that same passion and energy to the brokerage division. This focus and injection of industry expertise coupled with XGO’s legacy of strong customer service, extensive professional network and emphasis on teamwork and support from its parent company GO Services are a winning combination, making XGO truly the GO TO Market Advisory firm.

XGO is a Business Brokerage and M&A Advisory firm focusing on deals in the small to lower middle market range around the country. XGO’s headquarters is located in Carmel, Indiana. With their extensive network of associates, they can provide a range of best-in-class brokerage services throughout the US. If you are considering a sale now or in the future, please feel free to reach out for an exploratory conversation.