Sell Out: What to Know When Cashing In Your Business
You’ve spent years — maybe even a lifetime — building a business and are starting to think about cashing out. Is now a good time to sell? Do you need a broker? What are the steps involved? There are many questions to consider when making such a big change, and much of it is about the business itself. We talked to three experienced business sellers – Michael Assad, Frank Auddino and Michael McCarthy – who answered our questions, and even some we didn’t think to ask. Here are the top things we learned about what to consider when selling, or thinking about selling, your business. Playback the full conversation!
Make a Plan
What is the first thing you should do when starting a business? Plan your exit, and have clear next steps after you move away from it; we often forget about life after the business and what projects or passions we’ll pursue.
Consider Other (Non-Selling)Alternatives
It’s OK to step back and consider a board or advisory position – hire other people, and let the business continue to run and grow – but not necessarily sell out.
Do your best not to get too “emotionally tied” to the business during the selling process – it’s purely a numbers game at that point.
Don’t have any regrets – live, enjoy and learn – you can only go through so many, many “what if” scenarios before you just have to act, and trust that best outcome will happen.
Thank you to all of our panelists for making such a thoughtful contribution and sharing a plethora of tidbits that business owners ‘selling out’, or simply considering, can put to good use. As the panel said, it’s never too soon to start making an exit plan; but, we have to be honest, it is one of the most overlooked aspects of business ownership – entrepreneurs are usually focused on ‘running and gunning’…so, do your best: make a plan, cash out, and let go!