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.
What happens if you are struggling to sell your small business? What if a buyer is seeking some of your key assets but is not interested in the entire business? Maybe you need to expedite the process of transitioning out of the business?
No one expects it but unforeseen circumstances do happen and cause major disruptions to your ability to run a business. So if these situations happen, do you have a plan?
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.