For those North Carolina individuals who are inclined to own their own business or who find themselves embarking on that path through circumstance and opportunity, getting to the point of financial security and success can be a long and hard road. And in fact, many new enterprises, despite all the hard work and effort, don’t make it. Therefore, when a business does thrive over the long term, getting to the point of contemplating retirement or otherwise looking at an exit strategy can prove to be a foreign concept. Objectively evaluating the business and realistic options can prove elusive.
The number one commonality among business owners looking to sell is an unrealistic opinion regarding their business, as reported by business brokers. A typical initial reaction is that no one could possibly take care of the business as has been done before. Closely tied to this is an over-inflated estimate of the company’s worth. And in fairness, valuing a business is difficult, and there are various different metrics to objectively reach a fair price.
Other issues include such things as not considering options other than a complete sale, not preparing the employees and family members for the transition, not properly preparing as an owner for life after work and leaving unresolved loose ends that should be cleaned up before handing the keys over to new management. The task can seem overwhelming, but the best strategy is to begin to prepare long before the actual target date. In this manner, control can best be maintained right through the final days of ownership.
Just as the seller of a business might benefit from the advice of a business law attorney, so too should a business purchaser. Costly mistakes can potentially be avoided, and a full understanding of the transaction is in everyone’s best interests.