I attended a seminar recently about business transitions.
The presenter was Michelle Bonahoom of VisionOne.
She said that there are some important factors to consider before selling your business.
If you are in a position where you may consider selling soon, here are the factors which must be considered to maximize your return:
She calls these the Four Primary Value Forces:
1. External Forces (political, economic, technological, legal )
There are forces completely outside of your control, such as the state of the economy.
Sometimes you may need the timing of your sale offer for the right conditions.
So take a look at where the economy is headed, and where we are at in the political landscape. Just before an election is often a good time, as politicians work harder at having a good economy in place before an election.
2. Market Forces (market timing, buyer type, business model, industry, access to capital)
3. Personal Forces (wealth plan, succession plan, legacy plan)
4. Business Forces (quantitative value; qualitative value )