Triple Play What to do before selling your business

Listen to this article

Triple Play is a weekly NJBIZ feature that asks top executives in New Jersey to talk about three things related to their industry.

Dan Doran, CVA is the founder of Quantive Business Valuations, a Jersey City and Alexandria, Virginia-based professional business valuation practice.  

We asked Dan to discuss three things business owners should do before they want to sell their business.

Start writing your exit plan. It’s not enough to simply “list” a business for sale. It’s a process, not a product — a process that most business owners don’t realize can take three to five years. The exit plan is a formal, written and living document that takes aspects of your exit into consideration, including the funds you’ll need post-sale.

Pull together your exit planning team. Your business is your biggest asset. You need to get this right, and now is the time to set aside your DIY mindset (which no doubt helped you build your business). There are six key players who traditionally make up an exit planning team: A valuation expert, a CPA, a financial planner, an improvement consultant, a business broker and a transaction attorney.

Make your business more salable. How desirable will your business be to the right buyer? By identifying and mitigating risk factors early, you can help increase your buyer’s confidence in the transaction. Work with your team to plan for how you will remove yourself, and think about providing a lengthy, well considered transition.