No matter what industry you might be involved in, it’s almost impossible to avoid the news about the supply chain in recent years. For those involved in transportation and logistics, issues involved with everything from staff and equipment shortages to higher input costs have often become debilitating. As a result of recent events, many business owners have begun the thought about putting their businesses on the market. However, the fact of the matter is, those who have not prepared in advance have put themselves at a significant disadvantage.
Why Preparation is Key
You never know when outside forces will cause you to want to think about transition planning. Supply chain issues are just one example. Everything from personal issues, such as health or family problems, to changes in tax laws, have caused business owners to decide to sell. If you have a contingency plan in place, you will have a written plan for how to proceed if an unexpected event were to occur.
Put an Experienced Team in Place
When something is as important as the sale of a business that you have invested years of your life into, you’ll want a trusted and effective planning team in place. You’ll want to include not only a business broker or M&A advisor, but also a CPA, attorney and perhaps even a financial advisor. Of course, make sure these professionals have ample experience helping clients who are selling their businesses.
Be sure to seek advice from these parties and pay careful attention to their ideas and recommendations. Be sure to get all of your questions answered so that you are clear on expectations.
Develop a Plan
An ample amount of work lies ahead, so it makes sense to do all you can to accurately assess and prepare your business. The next step is to conduct a business valuation that involves a wide variety of factors. Together you and your team can then determine a fair selling price for your business. You will also want to rely on these professionals to help you to ensure all documentation and financial records are in order.
You will also want to take time to strategically plan for how you can improve the attractiveness of your business for a prospective buyer. You can make improvements in various ways, ranging from upkeep and maintenance to improving your staff and internal operations.
The truth is that transitioning requires an ample amount of time and energy. It’s the time to make many decisions. For example, will you agree to stay on for an established period of time to assist the new management and ownership? Transitioning might even be an emotional experience for you since you have likely spent many years invested in your business. Think about what you’ll want that next chapter to look like after the transition.
Reach Out to Us
Our team at Creative Business Services/CBS-Global is ready to assist you with your exit planning process. We work closely with business owners on exit planning. Our company prides itself on adhering to the highest standards of integrity and confidentiality with more than 150 years of combined industry experience.
Ryan Pankratz is Business Intermediary of Creative Business Services/CBS-Global.
Call us to 920-432-1166. All your inquiries are strictly confidential.