Sell my business professional#

Whether you’re selling handmade items, print-on-demand clothing or custom-printed mugs, it’s important to start with a business plan. Based on what you want to sell, you can find platforms with as many or fewer customization options to put your product-selling business together. In this way, you can manage your personal future as well as manage your business.When you’re figuring out where to sell online, you have to define the type of product first. Start early and evaluate your options with a trusted M&A advisor who can help you develop a plan in stages. Our advice is this: Do not try to bundle your retirement, cashing out, and transition plan into one quagmire of issues. owner has greater flexibility as to deciding ongoing role in company.

owner continues to reap appreciation on remaining equity.owner continues to run business but with greater funding and support.Sometimes the strategic buyer may be the best option but an astute owner may select a PEG for reasons including:

Sell my business professional#

A professional investor that is not intimate with your industry may value your knowledge and company identity more than a strategic buyer. Oftentimes strategic buyers anticipate increasing profits through cost reductions (eliminating your key people). Why talk to someone that is not a leader in my industry?”Ī strong industry player may want you most but may not be your best buyer. “I already have a strategic (industry) buyer that is interested. Thus career opportunities and financial rewards occur when management performs. Companies are valued highest when management has a proven track record and a commitment to continue. Many PEGS also desire that management owns equity. Similar to your motivations, a PEG seeks to build the company and shore up the management. “I don’t want someone selling out this company and management after a few years.” Investors talk about multiples of historic earnings but, be assured, the value is based upon future cash flow. Buyers disappear when they perceive growth has crested. The time to sell is when business is up and the future is promising. “We’re growing rapidly and business is good so now is not the time to sell.” But some owners prefer that the PEG rather than a family member evaluates and takes appropriate steps to assure management performance. “I’ve got kids coming along and want to see if they can manage the business.”Ī PEG hopes your offspring can manage. Experienced with family dealings, a PEG may fill various demands by providing liquidation of shares for some and ongoing employment and/or stock appreciation to others. That’s exactly why a PEG may be the solution. Our shareholders could never agree on what to do with the company.” With funding and growth your remaining equity appreciates and oftentimes the sale of your remaining equity exceeds the monies received from initial partial equity sale. Oftentimes the “second bite of the apple” is greater than the first. “Why would I sell just part of my company rather than totally cash out?” What you’re actually saying is: “I’m having too much fun to retire now!” A PEG simply provides you substantial cash now for equity while encouraging and financing you to continue growing revenues and profits. “I’m having too much fun to sell out now!”

Their expertise tends toward financial modeling, lender relationships, and acquisition activities. PEGS are not organized to run businesses. But some buyers and most private equity groups (PEGS) will not invest in your company unless you or at least your management team will continue running the company. “I couldn’t work for anyone else after owning my own company!” If you are an owner, you may have voiced some of the following questions and comments: For this reason, many business owners miss out on what could be the best years of ownership for lack of understanding their options-especially their options with private equity. Owners not ready to retire often believe it is too early to consider an exit strategy. The short answer to the above question is this: in general, business owners need to begin developing relationships at least five years before they intend to phase out of their business.