Selling a business is not one decision. It is many. The owners who do it well have answered the hard questions before a buyer ever shows up. Here are eight worth sitting with.
- What is the business actually worth, with evidence? Not what you hope. What you could defend in a room full of buyers and advisors.
- What will I do the day after? An exit without a plan for your time and money often turns into seller’s remorse, even on a good deal.
- How much do I need to walk away clean? Know the number that funds the rest of your life, after taxes and fees. That is your real floor.
- How dependent is the business on me? If it stops working when I leave, the price drops. Have I started to fix that?
- Who are my real buyers? A competitor, a private equity firm, and an employee group all value the business differently and behave differently.
- Are my financials ready for scrutiny? A buyer’s team will examine everything. Surprises during diligence cost money and trust.
- What is my timeline, really? The owner who can wait negotiates from strength. The owner in a hurry gives it away.
- Who is on my side of the table? The buyer has a team that does this constantly. Do I have advisors who do too?
One business owner answered the first question and stopped there for a moment. The valuation was lower than he wanted, but it showed him exactly which two things were dragging it down. He spent a year on those two things, then revisited the rest of the list. He sold later, and for more, than if he had rushed.
You do not need every answer today. But the gaps in your answers are the gaps a buyer will use. Find them first.
Talk it through
Question one is the foundation for the other seven. The M1 Valuations team can answer it with a number you can stand behind. When you are ready to start, we will walk you through it.