Preparing Your Company For Sale

Ultimately every business owner will have to hand over the business to someone else.  We have found that the longer you plan ahead, the better the outcome.  While there are many things to consider when planning your exit, here is a list of some things to consider:

• When will I retire?
• Do I want a role in the company post sale?
• What is my company worth today?
• What will my company be worth upon time of sale?
• Do I have the right corporate structure to maximize after tax proceeds?  If I don’t, what can be changed?
• Should I own the company’s real estate inside the company?
• What should I do if I want to sell to my kids?
• What should I do if I want to sell to my Key Managers?
• What is tail insurance?And what does it matter if my insurance policy is claims made and not occurrence in a sale?
• Who of my key management should I get under a non-compete? Do they need to be covered by one?
• What do I need to do to show a buyer that I am replaceable?
• What language should I put in my contracts with customers to make the potential sale smoother?
• What is considered customer concentration in my industry and what steps do we need to take now to minimize?
• Do my financials have to be audited or reviewed?