Welcome back to my weekly articles on business building. Understanding that the more prepared your business is for a sale, the more, and possibly better, the better the outcome. An important part of every sale is “papering the deal” - preparing the legal documentation that will be a part of the sale process. As an owner it is critical that you understand all the terms and conditions for a sale as they will define what your obligations are during the sale process, but also what your obligations will be after the sale. Finally, it will be the Terms and Conditions that define the final price you will receive, not the original offer proposed.
Most owners get one chance to get it right when they decide to sell, yet most owners cannot sell the business they built (only 1 in 10 are successful) because they did not build a sellable asset. If selling your business to fund your future lifestyle is necessary, ask yourself whether you are prepared or not, and then identify what you need to do to get to where you need to be.
With up to 76% of Canadian businesses reporting that they hope to exit in the next 10 years, being unprepared might cost you both your legacy and your retirement. With only 1 in 10 having a plan, the odds against are not in an owner’s favor.