You’ve made the giant decision; it’s time to sell your business. Do you just hope someone comes and gives you two tons of money for your business or do you put together a team that can help you achieve your goals? I vote for the team that can help with your goals. Here are the people I think are important in helping you execute a successful sale and exit from your business.
When I talk about tax cost I mean the amount of money that must be earned before principal can be paid. For example, if you are in the 40% tax bracket you will have to earn $1,800,000 – pay $800,000 in taxes to be left with the $1,000,000 to pay someone for their stock.
I’ve been doing a fair amount of work recently on helping people manage their relationship to their business. What this means is finding ways for the business owner to spend less time working and more time disengaging from the day-to-day operations.
In order for a business owner to do this they often must increase the enterprise value of their business. The question you might have is first, what is enterprise value and second, what is the easiest thing one can do to increase that value.
Between the credit crisis, inflation roaring back and a change in the business cycle private business owners have been finding it more difficult to sell their business to outsiders. More and more we’re also finding the children of private business owners aren’t interested in taking over the business or their parents aren’t interested in having their children take over the business.