If you own a business, the questions you’ve undoubtedly asked yourself many times are
- Is now the right time to sell?
- Should I hold off selling now to grow the company for a more lucrative selling price later?
- How will I know when it is the right time to sell?
The key to answering all those questions really depends on your end game. Ask yourself, what are my growth goals for my business? What do I need to do to get to these goals? And probably the most important question, will that future selling price, less the costs of growing the business, exceed what I can sell my business for right now?
Many emotions come into play when selling a business. It isn’t just a business, it’s your baby! In the early days of infancy, you nurtured it, you stayed awake at night worrying if this baby is ever going to grow up and become profitable, all the while as the bills keep piling up. You’ve worked so hard over the years and made so many personal sacrifices to get it to where it is today. And now as this baby has grown up and become a mature, profit-making business, how can you hand it over to someone else to carry on its growth? How can you just let it go?
Selling a business isn’t like selling a house or a car, which you may do several times in your life. This business that you have brought into existence is a unique asset. It would be very difficult, if not legally impossible due to non-compete clauses, to replicate. This is a once in a lifetime opportunity to get the maximum value for this business and ensure that this baby of yours will continue to grow and realize the vision you held for it. How terrifying the thought of regret wondering, did I really get it right with that one shot I had?
The market is hot right now for acquisitions, with a surplus of buyers looking to buy your business. So now might be the best time for selling. But keep in mind, many of these buyers are large corporations, with dozens of attorneys and accountants working to make sure they pay as little as possible and get the best possible terms for themselves. I sound like I’m saying this is a bad thing. It’s not! It’s due diligence, and it is prudent business policy.
You need to be sure you’ve armed yourself with all the tools necessary to negotiate with the buyer. Be confident in knowing how much your business is worth. Make sure you have a skilled and credentialed individual making that valuation, someone who represents you. Your financial records are so important to document to the buyer of how well your business has performed. This can be a very intimidating process, especially if you don’t have the accounting expertise internally to help you through it. And possibly most important, you need someone on your side who understands and appreciates how important this baby is to you.
AK Consultants & Healthcare is that trusted advisor that will be with you at every step of the process. We will make sure your interests are fully represented in this transaction, which is so much more than just a transaction.
You’ve got one shot, make it your best shot!
Ron Hartman, CPA
Chief Financial Officer
AK Consultants & Healthcare