There are many reasons small business owners seek an exit from their businesses. Retirement, health concerns, simply seeking something new or other circumstances are just a few of the most common reasons. The ideal exit is to sell the business and pocket the cash. As a small business owner, you may be considering an exit and wonder if selling your business is a good option. If you have a strong emotional attachment to your company, it may be hard to look at the decision objectively.
Every business owner wants to know “how much is my business worth?” Let’s be honest, you built your business and it is probably a big part of your financial net worth and maybe selling it is key to your retirement planning.
Getting a valuation for your business that is lower than what you expected can come as an unwelcome surprise. It can be frustrating if you expected something higher as part of your retirement planning.
Exiting a small business will likely include preparing financial statements for potential buyers as well as obtaining a business or net asset valuation (ExitGuide Pro includes a valuation). If you need a refresher on some of the terminologies or you do not “speak finance” ExitGuide has summarized many key terms below in what we hope is a clear and practical explanation.
When selling your business, there are many strategies you can use to increase the valuation of...