You have worked hard for many years to build your business, and you realize that you will eventually move on. This event could be an outright sale, or you could retain a 20% stake and continue to manage the company for up to five years. After 2 to 3 years, you’d have the opportunity to exit and Put your shares to the 80% owner.
To maximize the enterprise value, you’ll need to align the personal, business, and market aspects of your business. This alignment takes the right team combined with planning and time.
Personal
· Have I documented personal goals?
· Do I have personal, financial, and business tax strategies in place?
· Is there a transition plan for my family and my management team?
· Are the right advisors in place to guide me through planning and sale?
· Have I made enough money to sell or transition the business?
· Am I truly committed or just fishing?
· Am I emotionally ready for my next step in life?
Business
· Does the business have a sustainable and defensible business model?
· Has the business grown profitably for 3-5 years?
· Do I understand the complexities of a business sale?
· Does the business have a strong management team in place?
· Does the business have solid financial & banking performance metrics?
· Can the sale process survive detailed due diligence?
Market
· What are buyers & sellers looking for these days?
· Have I identified the right investment bank to represent me in the sale?
· How long do I need to prepare in advance?
· Am I selling at the right time to achieve my strategy?
· What if I am approached by a potential purchaser?
· How might government policies and the economy change my decision?
· Can I really “time” the market?
Successful business owners have focused on and are deeply involved with the success of their business. Closely held businesses are often the owner’s life work. With the right team – Management, Investment Banker, CPA and Law Firms, Wealth Manager – and in-depth preparation, the value of your life’s work can be significantly increased to the benefit of you and your family.
At JANAS, we have worked as professionals and executives, understanding the challenges of ownership. For decades, we have helped middle market company owners maximize the value of their life’s work.
Article Authored By Eric Jensen
Eric Jensen is a Managing Director at JANAS. He brings over two decades of executive leadership experience, coupled with a proven track record in operational optimization, strategic planning, and fostering stakeholder trust.
