Our CEO, Emery Ellinger, was featured in Discover Your Talents Podcast with Don Hutchinson talking about his greatest passion: helping business owners sell their business. In the interview, he shared inspiring strategies and captivating ideas on how business owners should approach the sale of their business.
Many times business owners come to the realization that they need help in the selling process. Selling a company it’s not an easy task. “Typically, when people come to our office they don’t have a son and daughter who wants to buy the company. They have built a big enough company where most employees can’t afford to buy, and so they are really trapped even though they would never admitted it.”
From this point on, Ellinger shares three important steps baby boomers should consider taking before selling a business.
ESTABLISH THE MOTIVES FOR SELLING
What is the main motivation a person has to sell their business? When someone creates and builds a business, it becomes very personal, and so, the decision demands individual and intimate clarity about the reasons for selling.
The business owner must also establish a clear plan about what is yet to come. Whether it’s retirement or other business ventures, this is a very critical component to successfully sell their business.
FIND OUT THE BUSINESS’ VALUATION
Take a look at the revenues, profit margins, cash flow and if it has a big customer that would be affected by the business being sold. All businesses are valuated differently due to the risk to the buyer. In his book “Turn Your Blood, Sweat and Tears into Cash: A Guide to Sell Your Business”, Ellinger explains more profoundly about the value of a company after an accurate valuation, analysis of strengths and weaknesses, and sales potential.
Also read our article Business Valuation 101: How Much Is My Company Worth
HIRE A PROFESSIONAL
The process of selling a company requires many specialized skills which the average business person does not possess. This is where the professional advisor comes in, to help business owners through the complex process of selling their business. Whether the goal is to travel, spend more time with the grandchildren, or explore a new opportunity, a professional will be fully committed to help the business owner sell and enjoy the years to come.
There are many other important aspects to look for when considering a sale of the business. Do you need help selling a business? Please reach out to Aberdeen Advisors today to schedule a confidential discussion.