(NC)—For most business owners, planning the sale or succession of their business often takes a backseat to the day-to-day grind leaving entrepreneurs ill prepared to even begin contemplating discussions of a merger or acquisition (M&A) involving their business. For many entrepreneurs, the belief that because they have managed the business, often for decades, means they have the necessary know-how to prepare the business for sale is a dangerous one.
“More often than not business owners are merely reactive, and begin to deal with sale or succession related issues only when approached by a potential purchaser,” says Michael Walker, national director, Aon M&A Transaction Advisory Group.
Walker suggests that business owners ask themselves the following questions, as they prepare for sale or succession of their business:
• Do you know how to prepare your business for sale and how to get the best price?
• What is the market value of your business right now? Do you have the time and resources it would take you to find the right buyer at the best price?
• Will you hand the business over to family, employees, an outside buyer, or will you take it public?
• Do you have the capability to keep financial information private/confidential when managing the sale?
• What is your exit timeline? Would you consider an on-going management role?
• Do you understand the tax implications of selling or transferring your business and what you need to do to hold on to as much financial value as possible?
• How much money will you need to live comfortably in retirement?
• If you suddenly became ill or unexpectedly die, does your business have a continuity plan and would your family be financially cared for?
Careful planning includes recognizing that you need expert help and support in what can be a very complicated business transaction. Further information on preparing your business for sale or succession is available online at www.aon.com.
Source: www.newscanada.com
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