Are You Ready To Sell Your Company?
Selling your company after investing years of hard work and money is a difficult and long process. David Lonsdale of Allegiance Capital in his article that appeared at Inc.com says you have to ask yourself some questions to find out if you are ready to let go – Who do you want to sell your business to? When will you sell? What are your reasons for selling? What are your plans after the sale? Do you just want to scale down your involvement with the company or are you prepared to let go completely? Are you emotionally ready to turn over your company to someone else? What type of buyer do you want to acquire your business?
Selling your company is a long and arduous process. If you can answer these three questions, you just might be ready for it.
Who do I want to sell to?
There are two types of buyers: strategic and financial. You need to figure out which one is right for you. A strategic buyer is generally a larger corporation that will buy you out, take over your operation, and incorporate your business into their own. You simply walk away with the proceeds. Or, you could be looking for a financial acquirer, who will provide you with growth capital and allow you to keep running the company.
Once you know what kind of deal you’re looking for, you need to find an actual “perfect fit” buyer who meets all your needs, financially and culturally. If you can’t imagine what your ideal buyer would look like, maybe you’re not ready for one.
Why do I want to sell?
If you always planned to sell the company at some point, then it could be time to cash out and enjoy the money. Maybe you’ve outgrown the company–the challenge of a startup isn’t there anymore and you’re bored. You could want more time to yourself, to train for a marathon and coach your daughter’s soccer team. Whether it’s money, time, or other goals, you need a concrete plan for what your life will look like after the transaction.
When will I be ready to sell?
Even if the company is ready to be sold, are you ready to sell it? Company owners are used to making big decisions about the company’s future. Most CEOs do this by focusing on the facts and numbers and then acting decisively. This works when you’re deciding which way to direct the horse. Choosing to let go of the reins is a much more emotional decision.
Selling a company is a long and time-consuming process. If you’re going to start the journey, you owe it to yourself to make sure you’re ready to go the distance. …
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