Don’t Sell Blinfolded: Use an Exit Readiness Check-Up For Key Insights

Selling Your Business is a big deal. You’ve spent a long time creating, nurturing, and growing it. However, maybe now you’re hearing the whispers it’s time to exit the business and go do something else.

Or maybe you know you’re ready to exit and don’t know how to start.

If either of these situations fits you, one action to consider is what I call an Exit Readiness Check-up.

Think of it like a pre-trip car inspection before you go on a long trip. Or like a pre-sale inspection on a house you’re thinking about selling. You may or may not be comittitted yet, but an exit readiness check-up gives you information about how ready you are to sell your busineee if and when you make the decision to go for it.

Here are five benefits of conducting such a check-up:

Maiximize Valuation: By assessing your business’s financial health, operational efficiency, and market positioning, you can identify and address areas where you can make improvements. This, in turn, can help maximize the valuation of your business, potentially resulting in a higher selling price.

Streamline the Sales Process: On average, it takes 9-18 months to sell a business once you hang the “For Sale” sign. If your business is not ready for sale, then the the sales process will take much longer. An exit readiness check-up allows you to prepare all necessary documents, contracts and financial statements in advance. This can significantly streamline the sale process, reducing the time and effort required to close the deal.

Mitigate Risks: By identifying and addressing potential risks and liabilities of your business, you can reduce the chances of complications and disagreements during the sale process. Over 50% of business sales fall apart during the due diligence process. Knowing risks ahead of time lcan lead to a smoother and less stressful transition for both you and the buyer.

Enhance Marketability: Assessing your business’s market position, brand and image helps you to make strategic improvements to enhance its appeal to potential buyers. A well-prepared and marketable business is more likely to attract qualified buyers and generage greater interest.

Prepare Emotionally: Selling a business is emotionally challenging. When I look back on the sale of my financial advisor practice in 2022, the emotional ups and downs were the most surprising aspect of the sale process. An exit readiness check-up allows you to mentall y and emotionally prepare for the transition, set clear goals, and have a realistic understanding of what the post-sale future may look like for you. This emotional readiness can help you navigate the process with more confidence and peace of mind.

In summry, conducting an exit readiness check-up provides numerous advantages, including financial benefits, process efficiency, risk mitigation, improved marketability, and emotional preparadness, all of which can lead to a profitable and efficient business sale.

If you’d like to have an outside expert view of your readiness to exit your business, please contact me. We collaborate with you to assess your business using 8 Key Varialble and the result is an outcome you can use to plan your next steps — sell now or start the transition procee to exit later.

SPECIAL OFFER: From now until November 15, I’m offering 5 business owners an opportunity to have me take you through am Exit Readiness Check-up at preferred fees. Please contact me ASAP to schedule a complimentary Get Acquainted session to discuss your business and how an Exit Readiness Check-up might benefits you. If you think it may be time to sell, let’s do this!