Have Clear Goals: Know Why You Are Selling Your Business

When contemplating selling your business, it is important that you have clarity around the goals and objectives motivating the sale.

Icon: Process of selling your business, setting goals...Perhaps you have been considering an exit for a long time or maybe you are facing a life event that is forcing you to evaluate your options, whatever the reason, understanding what has led you to the decision to sell, is extremely important.

As Mergers & Acquisitions advisors, we see many reasons business owners choose to sell:

  •  Personal – planning to retire, embarking upon a new journey, declining motivation (burn out) to operate the business, or declining health of owner/family member
  •  Economic – diversification of personal net worth, significant growth potential of business under new ownership, technological changes, aggressive competitor flushed with cash, or declining market demand

Ultimately, your motivation for selling is the number one factor contributing to a successful transaction. Knowing why you want to sell is paramount to the entire deal process. Your objectives will drive the type of buyer, the type of transaction and deal structure, the valuation, and the role you will play post-transaction.

Take your time. Have clear objectives. Reach out to professional advisors such as your attorney, accountant, or executive coach if you need clarity understanding your motivations behind a transaction.

With well-defined goals, you will increase your odds of a successful outcome.