The old adage, “If you fail to plan, then you are planning to fail,” is applicable in many aspects of life. Planning and preparation lead to a higher level of success in both personal and business endeavors. When it comes to high stakes activities like selling a business, the importance of proper preparation cannot be overstated. There are many steps a business owner needs to take prior to placing the company on the market to ensure an optimal return. This includes business items such as reviewing employment and business contracts, financial records, and entity structure. There are also personal considerations, such as investment plans, to consider.
To help clients and prospects understand these preparation steps, Sikich’s Business Succession Planning experts have provided a summary of the key issues below.
While a business owner may feel their company is operating just fine and no changes need to be made, it’s important to remember to view operations through the eyes of a potential buyer. Key areas to assess include:
Perhaps more important than business considerations are the personal financial considerations of the owner post transaction. Key issues to contemplate include:
There are several complex issues that must be addressed and carefully considered before putting a business up for sale. If proper care and advanced thought is not given to these issues, it’s very likely the outcome will not be favorable. If you are considering selling your business, our Business Succession Planning team can help prepare you and your company by taking you step-by-step through the process and setting your business up for continued success.
This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.