Family business succession planning is an often overlooked, but extremely important part of any businesses’ plan. This step of your business plan outlines your exit strategy. It may seem strange to develop an “up-front” strategy to leave your business, but potential investors want to know your long-term plans. Here are first five things you must know:
1. Understand different types of buyers
2. Understand how to calculate Seller’s Discretionary Earnings
3. Understand different ways to value a business
4. Understand that different buyers pay different prices
5. Understand deal structure – asset vs. stock
This article is the first in a series that we will be discussing 50 Things owners must consider to develop a business/ exit planning process.
