With proper planning, preparing to sell a business can greatly increase its value. However, most business owners prefer not to take the time to prepare their business, nor do they consider the current market conditions, interest rates, tax rates, current business cycle, etc. And that can prove to be a mistake.
Most business owners also tend to operate their business in order to minimize taxes and not to sell it. But if you plan in advance and shift your focus in the final years of running a business, you can greatly increase its value. The results of shifting focus will far outweigh any taxes you’ll pay.
Reasons people sell or exit:
- Age or retirement
- Economic climate is right
- Value has been reached
- Poor health
- You’ve built a success; it’s time for something new
- Death or disability
- To diversify one’s net worth
- To eliminate business risks
- Need of growth capital
- Revenues and earnings have peaked
- Business is failing
By planning for your exit in advance, no matter what the reason, you’re opening up the possibilities to leave sooner and/or with more money. The main cost to do this is just a little bit of time. Really.
Scenario Exit Planning℠ is a consultative service O’Keeffe & O’Malley offers to business owners to assist them through the many unknowns that lie ahead for a company’s business environment and the owners or key management of a business. Our Scenario Exit Planning℠ provides a multitude of possible roadmaps that identify many “what-if” situations (positive or negative) that a company can plan for by putting major contingencies in place so that a plan can be implemented quickly if needed. Being proactive in Scenario Exit Planning℠ can enhance the value of your business prior to selling and save a lot of time and money.
O’Keeffe & O’Malley can assist you with your exit planning needs. Please contact us at our Kansas City office for a confidential, no-cost, no-obligation meeting. And get going on planning for your exit.