When clients tell me they would like to start a business, they are often surprised when I ask them if they have also considered a plan for when they decide to sell it. This line of thinking is typical among most business owners who assume that eventually they will be able to sell their business for a significant profit. However, these new owners get so caught up in growing the business that they do not plan for its sale, which requires just as much planning, ideas and teamwork.
Owners considering selling their business need to make sure they have a team of advisors long before the sale. This team of an attorney, financial advisor, investment banker, and tax professional should have a significant amount of expertise in the selling process and be integrated and communicating from the moment the first business plan is developed. This ensures that the plan to sell incorporates all of the business owner’s financial objectives and that the seller progresses into the next segment of his career financially equipped.