Questions Business Owners Should Ask Before They Sell Their Company
You’ve worked hard to build a company that is profitable and meets a need for your customers. However, like everything in life, there is a time to start, a time to build, and a time to end. You likely spent quite a bit of time and energy planning when you began and built your company, so why not plan when it’s time to sell?
Part of the planning process when you’re selling begins by asking yourself a few questions.
- What is my company worth? This can be a difficult question to answer because we are emotionally involved in the company. Even though we know our business is valued at X, do we have the data to support that position? A buyer won’t have your emotional investment in the company. All they will see if the balance sheet, the P&L, and the current state of your business in the marketplace. They will evaluate the value of the book of business you currently hold and maybe what you could potentially hold in the future. Be realistic and honest with...
