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Week 1: Pre-Planning: Developing Your Goals and Defining Your Game Plan

For many, the mere thought of selling their business is difficult. It may be, for example, that your company has been in the family for generations, or it may be that you have invested significant personal time and resources into starting or growing your company — selling it might feel like you would be losing part of yourself. Nevertheless, it is always better to be prepared. Recent studies have shown that only about 10–15% of family-owned businesses remain privately held companies by the time the third generation is ready to take charge.”[1] Each year, an increasing number of transactions are prompted by unsolicited offers. Preparing for a sale now will give you greater control in the future.

Issues and Questions to Consider

What Are Your Goals?

When thinking about whether or not to sell your business, defining your objectives is important: clear priorities will guide your decisions and enable a smoother process. Today’s business environment may push you to rush into a sale to capitalize on seller-friendly terms. As moving quickly is often inevitable in the context of a sale, it is crucial to consider the important issues in advance. To clarify your goals, you may want to ask yourself:

• What is your main objective?

• When is your ideal exit?

• Do you prefer a strategic buyer that is already a participant in your industry to a private equity buyer? Each has advantages and...

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