Wait for a buyer…
According to Deloitte’s Entrepreneurship UK: 2008 survey: 35 percent of business owners said they will wait for a third-party offer for their businesses. Owners in this group believe that one day a buyer will contact them, negotiate a sale, and that will be that. Well, this is a decision of sorts—but one that flies in the face of reality. While few businesses are being sold today, there will likely be a significant number of Baby Boomer business owners vying with you to sell their businesses when the M&A market recovers.
In a competitive buyer’s market, only the best-prepared businesses sell for top dollar. And the owners of those well-prepared businesses will be those who made the decision to act to prepare their company years ahead of the actual sale.
Liquidate…
Liquidation is a common exit path for owners of companies whose cash flow is flat and has little probability of improving—absent the design and execution of a business/exit plan. If you find yourself in this group, we recommend that you meet with your tax and other advisors to do the planning necessary to create the most tax-efficient liquidation possible.
Succession Management/ Exit Planning…
Planning for succession and your exit from your business is not an event, but a process that should begin years in advance of your anticipated departure. The first step of the process is to develop a vision for you, your family and the team who will manage and perhaps own your company. Then establish goals (aligned with your vision) or a pathway that leads you toward your vision. This is clearly the best and most profitable road to your future.
