It’s important to assemble the right team to help you achieve your goals for the sale. “The buyer, in that case, would usually want a significant reduction on the valuation.” Who should you consult when selling a business? “If it’s a 100%-cash-out deal, the buyer is taking on more risk because the seller isn’t involved any more, and a lot of things could go wrong post-transaction,” says Dwivedi. Keep in mind that buyers may insist on a reduced price for the business if you choose to cut all ties. You may choose to completely end your involvement with the business after the transaction-to focus, for example, on retirement or other projects. In this case, there’s a benefit for you to remain involved with the company afterward, such as through vendor financing, an earn-out, a phased transfer of ownership, or obtaining a role as an executive, board member or advisor. You might prefer to ensure a smooth transition for the legacy of the business, so that it carries on without you and long-time employees keep their jobs. You may want to maximize your company’s sale price and be able to fund post-transaction activities, such as retirement, having money for family or charity, or pursuing other ventures. Being clear on your goals will help you take the appropriate steps to structure and prepare for a transaction that satisfies your needs. Your reasons for selling will likely influence your goals for the transaction-what you want out of it. Most common objectives when selling a business On the other hand, you may see coming market or technological changes that require significant investment of time and resources, and you’re unwilling or unable to make those needed investments. You may be wanting to cash out due to favourable market conditions.
You or your business may not be doing well financially, and you want to sell to pay off personal or business debts. Some business owners decide to sell because medical issues are preventing them from adequately running the company. Or you may have had a dispute with your business partners, or even just want some time off. You may want to move on to another project, such as a new business venture or a different lifestyle or career. In fact, a 2021 BDC study found that 9% of Canadian businesses would be put up for sale over the following five years. As baby boomers retire, Canada is experiencing a major wave of business ownership transitions. You may be nearing the end of your career and want to enjoy retirement. What are the reasons for selling a business?īeing clear on your reasons for selling is vital. Growth & Transition Capital financing solutions Kauffman Fellows Program Partial Scholarship Venture Capital Catalyst Initiative (VCCI) Industrial, Clean and Energy Technology (ICE) Venture Fund
0 kommentar(er)
