Many business owners do not have a strategy to exit their business. While being immersed in the day-to-day operations of running the business, it is easy to neglect the long term planning aspects until it is too late. Life is full of unexpected surprises such as sudden illness, accident, divorce or even the death of a family member. Some are hit with partner disputes, career burnout, cash flow and legal issues. You might spend a lifetime building and growing your business and an unforeseen event could push the business into insolvency, leaving you with little to show for your hard work.

A successful exit plan aims to mitigate as many unforeseen circumstances as possible. Whether you exit the business in a voluntarily or involuntarily, it is critical to plan and prepare for this inevitable exit.  Omnium Mergers and Acquisitions work with business owners to maximize the appeal and market value of their business and prepare the business for sale so ultimately the owner can exit their business on their terms.  Here are some things to keep in mind as you develop an exit plan.

Identify Clear Objectives:
Every owner has unique goals and objectives with respect to their business and personal life. This includes when to sell the business, how much to sell the business for, who to sell the business to (family members, management/employees, 3^rd parties etc) and any other general considerations relating to an exit such as employee retention.

Quantify the Business:
What an owner believes their business to be worth is not necessarily the price someone may pay for it. Seek a business valuation from a qualified professional to determine if reaching those personal exit objectives will be possible.

Maximize & Protect Value:
It’s possible that current business value may not fulfill an owners exit outcome/objective. Aim to protect existing value and identify ways to increase value.

Determine Sale Structure:
Minimize the tax impact, address liabilities and maximize the value of the sale by developing a structure for the business sale with the assistance of a qualified business intermediary, in addition to qualified lawyers and accountants.

Develop Marketing Plan:
Working with a qualified business intermediary capable of crafting a captivating story of the business’s past and future is key to a sale. Identify opportunities for growth and examine current business areas of improvement as an exercise in what potential buyers are looking for.

Transfer or Sale of Business:
Although complex and time consuming, there is a great deal of value in engaging a business intermediary to assist with the sale of a business. Through careful risk assessment, legal review, strategic negotiations, and the ability to manage all aspects (financing, accounting, legal, compliance, operational) surrounding a deal, the experience of a business intermediary results in the highest sale price possible.

If you’re serious about selling your business in the next few years, contact the professionals at Omnium Mergers and Acquisitions Inc to see how we can assist you in maximizing the attractiveness and market value of your business.