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CEO Advisor® Newsletter
August 2020 
10 Key Items Before Selling Your Business

It can be very appealing for a CEO or business owner to sell their business on their own to a strategic buyer, especially when the CEO has been approached by the strategic buyer. There are other options to selling your business such as selling to a Private Equity firm, but we are going to focus on strategic buyers only in this article.  
When a buyer approaches a company directly, the business owner may feel they can avoid some of the work and time involved in preparing to put the business on the market. The CEO may be able to maintain the confidentiality of the sale by dealing with only one buyer. The business owner may also feel he/she can save on the fee to an M&A advisor or intermediary. 
 
As with most major issues such as selling a business, there is a real price that a CEO or business owner pays when going down this path solo, including having no competitive bidders resulting in disadvantageous terms that can be extremely costly.  Your business may be your most valuable asset and is a very dynamic, complex thing to sell requiring a lot of knowledge, preparation and experience. If you would not sell your own home, you certainly do not want to go into a 6 to 9 month process to prepare, market and sell your own business.
Here are some critical issues to remember when dealing with a strategic buyer: 
It takes time to sell a business and it takes even more time to deal with multiple buyers. The original Information Request from the strategic buyer coupled with a Letter of Intent may seem manageable by some CEOs, but the subsequent Due Diligence process will be extremely time consuming and taxing at a time when you need to stay focused on your business and continue to drive sales.
Even the prep work of supplying the initial set of information to the prospective buyer and negotiating the Letter of Intent can be overwhelming to a first or second time seller. Hire a professional to sell your business. Don't risk taking time away from it to "do it yourself" and have the sales and profits of your business falter as a result, which could jeopardize the price or completing the sale altogether.
Don't get lured into discussions and believe the strategic buyer. More importantly, don't get your advice from the buyer. The buyer is not looking out for your best interests and there are many issues and questions you want to avoid that will tip your hand on price and terms that you don't want to divulge. Remember that they are pros at buying companies and you will be at a distinct disadvantage if this is your first time experiencing this movie play out.
Check the buyer's credit and get a confidentiality agreement signed before you deal with strategic buyers. Don't give them any information about your business beyond your marketing materials or other publicly available information until an NDA is signed.
Get a team of strong advisors looking out for your interests - an M&A advisor like CEO Advisor, Inc., a seasoned corporate/transaction attorney, and a CPA/tax advisor that regularly handles mergers and acquisitions transactions. This is money well spent and may be one of the best investments you will make.
Have your M&A advisor provide comparable sales information in order to be knowledgeable about your approximate business valuation. A strategic buyer that has bought a number of businesses in your industry in the past doesn't mean that they are paying good prices for them or know the full value of your business. You need a professional opinion of what your business should sell for and professionally prepared information about your business to optimize the value and to increase the probability of an attractive offer.
A purchase price based solely on an Earn Out is not a standard way to sell a business. An Earn Out is where the price is based on how the business performs after the purchase based on how well the seller runs the business. Any aspect of the sale price that includes an Earn Out should be well defined and a specific way to track and get paid on the Earn Out portion of the sale, if any, from a financially strong buyer. Cash is king and you want a substantial amount of your purchase price in cash.
Don't deal with only one buyer. In this situation, the buyer tends to hold the upper hand, particularly after an offer to buy the business is accepted. If an M&A advisor is handling the sale, buyers understand that there are most likely other buyers that will buy the business if they make unreasonable demands.
One of the benefits of selling to a strategic buyer is that the buyer may be willing to pay more for the business than a financial buyer such as a Private Equity firm, because doing so will increase their sales or profits by more than the two businesses do separately. Using an M&A process to sell the business with professionally prepared information in a Data Room and multiple interested buyers from a large list of targeted buyers is the best method to obtain the highest price and get a transaction completed.  
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
It can be very appealing for a CEO or business owner to sell their business on their own to a strategic buyer, especially when the CEO has been approached by the strategic buyer. There are other options to selling your business such as selling to a Private Equity firm, but we are going to focus on strategic buyers only in this article.  
When a buyer approaches a company directly, the business owner may feel they can avoid some of the work and time involved in preparing to put the business on the market. The CEO may be able to maintain the confidentiality of the sale by dealing with only one buyer. The business owner may also feel he/she can save on the fee to an M&A advisor or intermediary. 
 
As with most major issues such as selling a business, there is a real price that a CEO or business owner pays when going down this path solo, including having no competitive bidders resulting in disadvantageous terms that can be extremely costly.  Your business may be your most valuable asset and is a very dynamic, complex thing to sell requiring a lot of knowledge, preparation and experience. If you would not sell your own home, you certainly do not want to go into a 6 to 9 month process to prepare, market and sell your own business.
Here are some critical issues to remember when dealing with a strategic buyer: 
It takes time to sell a business and it takes even more time to deal with multiple buyers. The original Information Request from the strategic buyer coupled with a Letter of Intent may seem manageable by some CEOs, but the subsequent Due Diligence process will be extremely time consuming and taxing at a time when you need to stay focused on your business and continue to drive sales.
Even the prep work of supplying the initial set of information to the prospective buyer and negotiating the Letter of Intent can be overwhelming to a first or second time seller. Hire a professional to sell your business. Don't risk taking time away from it to "do it yourself" and have the sales and profits of your business falter as a result, which could jeopardize the price or completing the sale altogether.
Don't get lured into discussions and believe the strategic buyer. More importantly, don't get your advice from the buyer. The buyer is not looking out for your best interests and there are many issues and questions you want to avoid that will tip your hand on price and terms that you don't want to divulge. Remember that they are pros at buying companies and you will be at a distinct disadvantage if this is your first time experiencing this movie play out.
Check the buyer's credit and get a confidentiality agreement signed before you deal with strategic buyers. Don't give them any information about your business beyond your marketing materials or other publicly available information until an NDA is signed.
Get a team of strong advisors looking out for your interests - an M&A advisor like CEO Advisor, Inc., a seasoned corporate/transaction attorney, and a CPA/tax advisor that regularly handles mergers and acquisitions transactions. This is money well spent and may be one of the best investments you will make.
Have your M&A advisor provide comparable sales information in order to be knowledgeable about your approximate business valuation. A strategic buyer that has bought a number of businesses in your industry in the past doesn't mean that they are paying good prices for them or know the full value of your business. You need a professional opinion of what your business should sell for and professionally prepared information about your business to optimize the value and to increase the probability of an attractive offer.
A purchase price based solely on an Earn Out is not a standard way to sell a business. An Earn Out is where the price is based on how the business performs after the purchase based on how well the seller runs the business. Any aspect of the sale price that includes an Earn Out should be well defined and a specific way to track and get paid on the Earn Out portion of the sale, if any, from a financially strong buyer. Cash is king and you want a substantial amount of your purchase price in cash.
Don't deal with only one buyer. In this situation, the buyer tends to hold the upper hand, particularly after an offer to buy the business is accepted. If an M&A advisor is handling the sale, buyers understand that there are most likely other buyers that will buy the business if they make unreasonable demands.
One of the benefits of selling to a strategic buyer is that the buyer may be willing to pay more for the business than a financial buyer such as a Private Equity firm, because doing so will increase their sales or profits by more than the two businesses do separately. Using an M&A process to sell the business with professionally prepared information in a Data Room and multiple interested buyers from a large list of targeted buyers is the best method to obtain the highest price and get a transaction completed.  
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more informationContact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
It can be very appealing for a CEO or business owner to sell their business on their own to a strategic buyer, especially when the CEO has been approached by the strategic buyer. There are other options to selling your business such as selling to a Private Equity firm, but we are going to focus on strategic buyers only in this article.  
When a buyer approaches a company directly, the business owner may feel they can avoid some of the work and time involved in preparing to put the business on the market. The CEO may be able to maintain the confidentiality of the sale by dealing with only one buyer. The business owner may also feel he/she can save on the fee to an M&A advisor or intermediary. 
 
As with most major issues such as selling a business, there is a real price that a CEO or business owner pays when going down this path solo, including having no competitive bidders resulting in disadvantageous terms that can be extremely costly.  Your business may be your most valuable asset and is a very dynamic, complex thing to sell requiring a lot of knowledge, preparation and experience. If you would not sell your own home, you certainly do not want to go into a 6 to 9 month process to prepare, market and sell your own business.
Here are some critical issues to remember when dealing with a strategic buyer: 
It takes time to sell a business and it takes even more time to deal with multiple buyers. The original Information Request from the strategic buyer coupled with a Letter of Intent may seem manageable by some CEOs, but the subsequent Due Diligence process will be extremely time consuming and taxing at a time when you need to stay focused on your business and continue to drive sales.
Even the prep work of supplying the initial set of information to the prospective buyer and negotiating the Letter of Intent can be overwhelming to a first or second time seller. Hire a professional to sell your business. Don't risk taking time away from it to "do it yourself" and have the sales and profits of your business falter as a result, which could jeopardize the price or completing the sale altogether.
Don't get lured into discussions and believe the strategic buyer. More importantly, don't get your advice from the buyer. The buyer is not looking out for your best interests and there are many issues and questions you want to avoid that will tip your hand on price and terms that you don't want to divulge. Remember that they are pros at buying companies and you will be at a distinct disadvantage if this is your first time experiencing this movie play out.
Check the buyer's credit and get a confidentiality agreement signed before you deal with strategic buyers. Don't give them any information about your business beyond your marketing materials or other publicly available information until an NDA is signed.
Get a team of strong advisors looking out for your interests - an M&A advisor like CEO Advisor, Inc., a seasoned corporate/transaction attorney, and a CPA/tax advisor that regularly handles mergers and acquisitions transactions. This is money well spent and may be one of the best investments you will make.
Have your M&A advisor provide comparable sales information in order to be knowledgeable about your approximate business valuation. A strategic buyer that has bought a number of businesses in your industry in the past doesn't mean that they are paying good prices for them or know the full value of your business. You need a professional opinion of what your business should sell for and professionally prepared information about your business to optimize the value and to increase the probability of an attractive offer.
A purchase price based solely on an Earn Out is not a standard way to sell a business. An Earn Out is where the price is based on how the business performs after the purchase based on how well the seller runs the business. Any aspect of the sale price that includes an Earn Out should be well defined and a specific way to track and get paid on the Earn Out portion of the sale, if any, from a financially strong buyer. Cash is king and you want a substantial amount of your purchase price in cash.
Don't deal with only one buyer. In this situation, the buyer tends to hold the upper hand, particularly after an offer to buy the business is accepted. If an M&A advisor is handling the sale, buyers understand that there are most likely other buyers that will buy the business if they make unreasonable demands.
One of the benefits of selling to a strategic buyer is that the buyer may be willing to pay more for the business than a financial buyer such as a Private Equity firm, because doing so will increase their sales or profits by more than the two businesses do separately. Using an M&A process to sell the business with professionally prepared information in a Data Room and multiple interested buyers from a large list of targeted buyers is the best method to obtain the highest price and get a transaction completed.  
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
CEOs and business owners are a motivated, driven, self-sufficient group. You have built your business by doing things your way and learning how to save money along the way. You've also developed a lot of self-confidence and feel that you can do almost anything.
But when it comes to selling a business that you've worked so long and hard to build, it's not only prudent, but very cost-effective to hire a professional mergers and acquisitions (M&A) advisor.  Invest in a professional who has the expertise and experience to get the sale done and get it done at the optimal price and terms. There is too much at stake to risk making it a sale by owner project. 
Selling your business is extremely complex, requires a tremendous amount of time, preparation and follow through, organization and skill, and is one of those things that requires the experience of a business, finance, and M&A professional all in one.
Here are 10 reasons why you shouldn't attempt to do it yourself:
10. Maintaining Confidentiality. 
Maintaining a certain level of confidentiality across 75 to 100 targeted buyers is essential when selling your business. How do you maintain confidentiality while marketing to your potential buyers? You can't. You need an intermediary between you and the buyer. An M&A professional who is not involved with the business, contacts your targeted buyers, qualifies buyers, provides select amount of information and puts you in a strong, competitive position to sell.
9. You May Not be Dealing with the Optimal Buyers. 
Because of the large task of selling your company, many business owners selling their own business are dealing with buyers who happen to approach them. In many cases, these buyers are savvy business owners, in the same industry, looking to buy a business on the cheap or are very experienced at buying businesses. These types of buyers typically do not make the best offer nor are they financially qualified to buy the business.
8. It Involves an Extensive Amount of Time Better Spent Running Your Business. 
Selling a business takes a tremendous amount of time, organization, and a sale process that generates results. The  preparation alone to launch the process and generate multiple offers takes a lot of time (and expertise). Dealing with multiple potential buyers takes time. Meanwhile, you're trying to run the business and live your life. Do you really have the extra time to spend your precious hours selling your business when an expert should do it for you?
7. You Lack the Expertise and Experience in Selling a Business.  
Selling your business is not as simple as selling a property, and a business requires several types of expertise. You need to prepare information and reporting, and be very knowledgeable about financial statements and how businesses are valued. You need to know how to conduct the Due Diligence process and assist in the many business and tax issues that arise in the legal process when selling a business. You need to know what you can do, what your M&A advisor should do, what your tax advisor should do and what your corporate/transaction attorney should do to keep the buyer engaged and on track to get the deal completed.
You may have a very good attorney and accountant, but they do not have the same expertise as an M&A advisor to prepare the needed information to initiate the sale process, solicit offers from a pool of many selected potential buyers, secure offers from these buyers and conduct the Due Diligence process when it comes to selling a business.
6. Representing and Selling Yourself Typically Backfires. 
If you don't have the time, expertise, experience, great organization and sales skills, you definitely should not be selling your own business. But, even if you are a good salesperson, there is another good reason not to sell your own business. The more you pursue a buyer, the more you are sending a message that you are anxious or desperate to sell, which will tend to make the buyer think that they can pay less for the business. Since it is an M&A advisor's job to pursue buyers, doing so doesn't send the same message.
5. Your Sale Process and Marketing Doesn't Stack Up to an M&A Advisor. 
Sure, you can entertain a single offer from a company that contacts you but they will know that they are the only interested party, which puts you in a very disadvantageous negotiating position. You can also advertise on a few of the Internet business-for-sale websites, but a strong, experienced M&A advisor has a very disciplined, targeted approach with many pre-existing contacts and a staff to research and pinpoint all of the top potential buyers of your business. The result is that an M&A advisor will reach far more buyers resulting in a much higher probability of a completed sale, a faster sale and at a higher price with better terms.
4. An M&A Advisor Acts as a Buffer. 
Buying or selling a business is very stressful, takes hundreds of steps and may be the most valuable asset that you own. During the sale process, the buyer and seller are likely to get upset with each other and things may be said that would kill the deal if they were said directly to the other party. The M&A advisor is a buffer between the parties that prevents these deal-killers by implementing an element of Good Cop (you) and Bad Cop (M&A advisor) to perform the tougher negotiations and keep you in a strong standing with the buyer and your future boss.
3. The Sale Process is Much More Than a Couple of Meetings and Accepting an Offer. 
Accepting an offer to sell your business is only one aspect of the sale process and closing the sale. The sale process includes a plan, researching and documenting the potential buyers, creating and housing all of the preparation materials that will attract and secure a strong offer, negotiating and finalizing the offer, a complete Due Diligence process, overcoming any tax issues, typically negotiating a lease with the landlord, and working through all of the purchase agreement and employment agreement issues.
2. You Need a Trusted Advisor. 
Your attorney and accountant may be very skilled and knowledgeable, but most don't commit the needed time, don't focus on a goal of securing multiple offers, and don't have the knowledge about the marketplace and selling businesses that is needed to be successful.  
Attorneys and accountants react to an offer that is secured. A hands-on M&A advisor will advise you throughout the process and help you avoid making a major mistake that will cost you a ton of money or that will jeopardize the sale altogether. Also, a buyer is more willing to accept what an M&A advisor recommends since the prospective buyer will have developed a relationship with the M&A advisor from the first phone call initiated to the buyer, rather than what your attorney or accountant desire, who are typically pressing on a legal or tax issue.
1. Selling Your Business Faster For the Best Price. 
This reason alone should be enough to move any seller to using an M&A advisor. Selling a business is both tedious and stressful, and the only reason to undertake such an endeavor on your own would be to save money. But when it comes to selling a business, do-it-yourselfers typically get a lower price for their business and most don't get a transaction done at all. Why is that? An M&A advisor will reach a greater number of prospective buyers who know they must compete on price. Because they widen the field, an M&A advisor more than makes up for their fees with a proven sale process, higher sales price and better terms, providing the seller with a higher take-home figure.
Some sellers attempt to sell their own business, only to find the sale process is much more complicated and time consuming than they anticipated. Business deals are complex transactions that require expertise well beyond what the typical CEO or business owner has.
An M&A advisor is an expert and your trusted business advisor, your marketing team, and your expert negotiator all wrapped up in one.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
CEOs and business owners are a motivated, driven, self-sufficient group. You have built your business by doing things your way and learning how to save money along the way. You've also developed a lot of self-confidence and feel that you can do almost anything.

But when it comes to selling a business that you've worked so long and hard to build, it's not only prudent, but very cost-effective to hire a professional mergers and acquisitions (M&A) advisor.  Invest in a professional who has the expertise and experience to get the sale done and get it done at the optimal price and terms. There is too much at stake to risk making it a sale by owner project. 

Selling your business is extremely complex, requires a tremendous amount of time, preparation and follow through, organization and skill, and is one of those things that requires the experience of a business, finance, and M&A professional all in one.

Here are 10 reasons why you shouldn't attempt to do it yourself:

10. Maintaining Confidentiality. 
Maintaining a certain level of confidentiality across 75 to 100 targeted buyers is essential when selling your business. How do you maintain confidentiality while marketing to your potential buyers? You can't. You need an intermediary between you and the buyer. An M&A professional who is not involved with the business, contacts your targeted buyers, qualifies buyers, provides select amount of information and puts you in a strong, competitive position to sell.

9. You May Not be Dealing with the Optimal Buyers. 
Because of the large task of selling your company, many business owners selling their own business are dealing with buyers who happen to approach them. In many cases, these buyers are savvy business owners, in the same industry, looking to buy a business on the cheap or are very experienced at buying businesses. These types of buyers typically do not make the best offer nor are they financially qualified to buy the business.

8. It Involves an Extensive Amount of Time Better Spent Running Your Business. 
Selling a business takes a tremendous amount of time, organization, and a sale process that generates results. The  preparation alone to launch the process and generate multiple offers takes a lot of time (and expertise). Dealing with multiple potential buyers takes time. Meanwhile, you're trying to run the business and live your life. Do you really have the extra time to spend your precious hours selling your business when an expert should do it for you?

7. You Lack the Expertise and Experience in Selling a Business.  
Selling your business is not as simple as selling a property, and a business requires several types of expertise. You need to prepare information and reporting, and be very knowledgeable about financial statements and how businesses are valued. You need to know how to conduct the Due Diligence process and assist in the many business and tax issues that arise in the legal process when selling a business. You need to know what you can do, what your M&A advisor should do, what your tax advisor should do and what your corporate/transaction attorney should do to keep the buyer engaged and on track to get the deal completed.

You may have a very good attorney and accountant, but they do not have the same expertise as an M&A advisor to prepare the needed information to initiate the sale process, solicit offers from a pool of many selected potential buyers, secure offers from these buyers and conduct the Due Diligence process when it comes to selling a business.

6. Representing and Selling Yourself Typically Backfires. 
If you don't have the time, expertise, experience, great organization and sales skills, you definitely should not be selling your own business. But, even if you are a good salesperson, there is another good reason not to sell your own business. The more you pursue a buyer, the more you are sending a message that you are anxious or desperate to sell, which will tend to make the buyer think that they can pay less for the business. Since it is an M&A advisor's job to pursue buyers, doing so doesn't send the same message.

5. Your Sale Process and Marketing Doesn't Stack Up to an M&A Advisor. 
Sure, you can entertain a single offer from a company that contacts you but they will know that they are the only interested party, which puts you in a very disadvantageous negotiating position. You can also advertise on a few of the Internet business-for-sale websites, but a strong, experienced M&A advisor has a very disciplined, targeted approach with many pre-existing contacts and a staff to research and pinpoint all of the top potential buyers of your business. The result is that an M&A advisor will reach far more buyers resulting in a much higher probability of a completed sale, a faster sale and at a higher price with better terms.

4. An M&A Advisor Acts as a Buffer. 
Buying or selling a business is very stressful, takes hundreds of steps and may be the most valuable asset that you own. During the sale process, the buyer and seller are likely to get upset with each other and things may be said that would kill the deal if they were said directly to the other party. The M&A advisor is a buffer between the parties that prevents these deal-killers by implementing an element of Good Cop (you) and Bad Cop (M&A advisor) to perform the tougher negotiations and keep you in a strong standing with the buyer and your future boss.

3. The Sale Process is Much More Than a Couple of Meetings and Accepting an Offer. 
Accepting an offer to sell your business is only one aspect of the sale process and closing the sale. The sale process includes a plan, researching and documenting the potential buyers, creating and housing all of the preparation materials that will attract and secure a strong offer, negotiating and finalizing the offer, a complete Due Diligence process, overcoming any tax issues, typically negotiating a lease with the landlord, and working through all of the purchase agreement and employment agreement issues.

2. You Need a Trusted Advisor. 
Your attorney and accountant may be very skilled and knowledgeable, but most don't commit the needed time, don't focus on a goal of securing multiple offers, and don't have the knowledge about the marketplace and selling businesses that is needed to be successful.  

Attorneys and accountants react to an offer that is secured. A hands-on M&A advisor will advise you throughout the process and help you avoid making a major mistake that will cost you a ton of money or that will jeopardize the sale altogether. Also, a buyer is more willing to accept what an M&A advisor recommends since the prospective buyer will have developed a relationship with the M&A advisor from the first phone call initiated to the buyer, rather than what your attorney or accountant desire, who are typically pressing on a legal or tax issue.

1. Selling Your Business Faster For the Best Price. 
This reason alone should be enough to move any seller to using an M&A advisor. Selling a business is both tedious and stressful, and the only reason to undertake such an endeavor on your own would be to save money. But when it comes to selling a business, do-it-yourselfers typically get a lower price for their business and most don't get a transaction done at all. Why is that? An M&A advisor will reach a greater number of prospective buyers who know they must compete on price. Because they widen the field, an M&A advisor more than makes up for their fees with a proven sale process, higher sales price and better terms, providing the seller with a higher take-home figure.

Some sellers attempt to sell their own business, only to find the sale process is much more complicated and time consuming than they anticipated. Business deals are complex transactions that require expertise well beyond what the typical CEO or business owner has.

An M&A advisor is an expert and your trusted business advisor, your marketing team, and your expert negotiator all wrapped up in one.

Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
There are different reasons why business owners choose to sell their business. There will come a time when selling it might be the best decision you can make. Valuations are very high currently so this can be a tremendous opportunity for any business. 
As an industry expert on mergers and acquisitions, CEO Advisor, Inc. can help you identify the optimal time to sell your business.
Below are the 20 common reasons for when to sell your business:
1. Your Business' Value Has Improved Significantly
When your business has grown substantially, it can be the optimal time to sell. Running a business is risky, and the bigger you get, the larger the risks you have to face. The value of your business is not liquid until you go through the transaction of selling your company and realizing the opportunity.
2. You Receive an Offer Too Good to Turn Down
If a buyer presents you with an offer you can't refuse, it can be ample reason to accept and sell your business. Such an offer is usually priced way above the market value of your business. This kind of offer is rare, so you wouldn't want to pass it up because you may not get another one like it in the future. Your optimal method is to prepare for and initiate a sale process to many potential buyers, but you never know when a serious buyer is going to knock on your door.
3. You Don't Have the Energy, Skills, or Capital to Grow the Business
One primary reason to sell a business is that you don't have the energy, time, experience, skills, and capital to take the business to the next level. A business should continually grow, and as business owners, there will come a time when you'll feel you can't generate substantial growth. This is the right time to sell your business and entrust it to those who have the skills and resources to grow it to the next level.
4. You Experience Fatigue or Lack of Alignment
If you got into a business for the wrong reasons or the market opportunity has changed dramatically, you will eventually experience a certain level of exhaustion that will no longer be healthy for you physically, emotionally, and mentally. If you think that there is no quick fix for the burnout you feel, then it's time to sell and realize the opportunity of today's extremely high valuations.
5. Your Business Has Substantial Sales Growth
One reason entrepreneurs choose to sell their business is that it has experienced substantial growth. This is extremely appealing to buyers and you can gain a higher valuation from the sale. Some business owners just want to take a lump sum of money from the sale, and the best time to do this is when you can show substantial and consistent sales growth and earnings.
6. Your Personal Interests Change
After years of running and growing your business, you may conclude it doesn't feel as interesting and exciting as when you started it, and you're losing your passion in your business. This is a sign that you should consider selling it. Over time, it's normal for your interests to change, and you should capitalize on the right opportunity to sell.
7. Your Business Doesn't Have the Capital to Grow or Survive Long-Term in a Highly Competitive Market
Private small and mid-size businesses are highly illiquid and risky assets. Without adequate capital, you can't realize the full potential of your business. If you need more liquidity and are presented with the possibility of selling your business, you should consider this opportunity. This can be more advantageous today given the high valuations.
8. You Want to Have a Fresh Start
Entrepreneurs have other motivations to sell their business and one of these is the desire to start a new one. Some entrepreneurs go into business because they want to start and build something bold and take a risk. This is what drives their spirit. If a business has already reached a certain point of growth and stability, some entrepreneurs just want to move forward, sell the business to cash out their hard work, and start something new and exciting. Although you need to plan on staying a year or two with the buyer in order to get a deal done, starting the sale process now will get you to your goal sooner.
9. You Need More Time for Your Personal Life
At some point, as a business owner you will finally realize that running a business takes too much of your time. When the time comes that you will need more time for your family, to take care of your health and/or your personal life, then selling your business is a good way to do it. 
10. Your Overall Exit Strategy Is to Sell Your Business
There are business owners who invest in building a thriving business to eventually sell later on at an optimal time for a huge sum of money. If this is your purpose for starting the business in the first place, then it's a great reason to sell the business as soon as you have reached your desired growth. Having an exit strategy is critical to every business, and CEO Advisor, Inc. can help you to discuss your options, formulate an exit strategy, prepare for the sale of your business, and execute the sale process at the proper time.
 
11. You Want to Retire
The majority of entrepreneurs plan to sell their business as an exit strategy to provide a comfortable retirement. Most business owners plan to sell their business rather than keep it in the family or hire someone to run it in their place when they retire as this is very risky. The driving force for this stems from the lifestyle many entrepreneurs face and lack of savings for retirement.
12. You've Achieved Long-Term Financial Security
One reason to sell your business is if you have achieved a certain level of financial security from running the business and you want to step down and start a less stressful lifestyle. You don't need to fully retire to do this, as you can take on a temporary lesser role or a consulting role after an acquisition. There are often options such as a majority sale to a Private Equity firm, and CEO Advisor, Inc. has the expertise to manage this for you. At this point, you want to sell all or a majority of your business when valuations are peaking.
13. You Feel Physically & Mentally Exhausted
As a business owner, you are most likely the hub of your business and make most of the decisions. This can be physically and mentally draining, and the time will come when your responsibilities as a CEO or business owner will take its toll on you. If you feel physically and mentally exhausted running the business, then it's time for you to initiate an exit and sale process. Don't wait until an illness or excessive fatigue sets in before you decide to sell, as the buyer will fully expect you to remain with the company for 1 - 2 years.
14. You Want to Take Advantage of Low Capital Gains Taxes
The tax rate on capital gains is at an historically low level. This is one good reason to sell your business and enjoy low tax rates if you can achieve a straight stock purchase. If you are at an age near retirement, or if you have already grown and stabilized your business, then it may be best to sell your business and take advantage of taxes at such relatively low levels.
15. You've Become More Risk-Averse
Risk is essential to your business' continued growth. If you have become risk averse, and you get to the point that new opportunities invoke more fear than excitement, it is a sign that you should sell your business. Becoming too conservative means losing your drive to grow the business, and this alone is a good reason to sell.
16. Your Business Partner Wants to Sell
If your business partner wants to call it quits and move on, you have the option to either buy out his/her shares and own the business entirely, or just sell the business to a third-party. Most of the time, the second option is more prudent because you may not have the capital or want to borrow substantial funds to buyout your partner.
17. A Sudden Lifestyle Change Affects Your Business
CEOs and business owners need to understand that there should be a clear delineation between their personal lives and their business. If a sudden lifestyle change (like getting married, divorce, health issues, going back to school, or giving birth) becomes a conflict with your commitment to your business, then it's time to consider selling.
18. You Struggle with Poor Business Performance
Running a struggling business can be very stressful and demotivating. If you notice that your business' performance doesn't improve, even after you have exerted a lot of effort and invested many resources to grow the business, then perhaps it's time to consider selling it to someone who has the skills and money to revive and grow it. Just don't expect to secure an optimal sale price or terms.
19. Your Business' Industry Is Thriving or You See a Decline Looming
If your business' industry is thriving, it's a good time to sell your business. A business in a thriving industry will likely sell for more than if your business' industry is struggling. You can take this opportunity to sell your business while there are more acquirers interested in buying it at a good price. It's important to pay attention to industry trends, as it will benefit you when you decide to sell.
20. You Have Health Issues or You are in Your Sixties with Previous Health Issues
If you think your business has cost you your health, then it's time to seriously consider selling it. Facing serious health issues is one of the most common reasons why some business owners choose to sell their business. After all, it's best to prioritize your health, and capitalize on today's lofty valuations.
Bottom Line - When to Sell a Business
There will come a time when you will need to sell your company. The right time to sell a business is based on various reasons, such as economic conditions, industry trends, valuations, personal situations, and professional considerations.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
There are different reasons why business owners choose to sell their business. There will come a time when selling it might be the best decision you can make. Valuations are very high currently so this can be a tremendous opportunity for any business. 
As an industry expert on mergers and acquisitions, CEO Advisor, Inc. can help you identify the optimal time to sell your business.
Below are the 20 common reasons for when to sell your business:
1. Your Business' Value Has Improved Significantly
When your business has grown substantially, it can be the optimal time to sell. Running a business is risky, and the bigger you get, the larger the risks you have to face. The value of your business is not liquid until you go through the transaction of selling your company and realizing the opportunity.
2. You Receive an Offer Too Good to Turn Down
If a buyer presents you with an offer you can't refuse, it can be ample reason to accept and sell your business. Such an offer is usually priced way above the market value of your business. This kind of offer is rare, so you wouldn't want to pass it up because you may not get another one like it in the future. Your optimal method is to prepare for and initiate a sale process to many potential buyers, but you never know when a serious buyer is going to knock on your door.
3. You Don't Have the Energy, Skills, or Capital to Grow the Business
One primary reason to sell a business is that you don't have the energy, time, experience, skills, and capital to take the business to the next level. A business should continually grow, and as business owners, there will come a time when you'll feel you can't generate substantial growth. This is the right time to sell your business and entrust it to those who have the skills and resources to grow it to the next level.
4. You Experience Fatigue or Lack of Alignment
If you got into a business for the wrong reasons or the market opportunity has changed dramatically, you will eventually experience a certain level of exhaustion that will no longer be healthy for you physically, emotionally, and mentally. If you think that there is no quick fix for the burnout you feel, then it's time to sell and realize the opportunity of today's extremely high valuations.
5. Your Business Has Substantial Sales Growth
One reason entrepreneurs choose to sell their business is that it has experienced substantial growth. This is extremely appealing to buyers and you can gain a higher valuation from the sale. Some business owners just want to take a lump sum of money from the sale, and the best time to do this is when you can show substantial and consistent sales growth and earnings.
6. Your Personal Interests Change
After years of running and growing your business, you may conclude it doesn't feel as interesting and exciting as when you started it, and you're losing your passion in your business. This is a sign that you should consider selling it. Over time, it's normal for your interests to change, and you should capitalize on the right opportunity to sell.
7. Your Business Doesn't Have the Capital to Grow or Survive Long-Term in a Highly Competitive Market
Private small and mid-size businesses are highly illiquid and risky assets. Without adequate capital, you can't realize the full potential of your business. If you need more liquidity and are presented with the possibility of selling your business, you should consider this opportunity. This can be more advantageous today given the high valuations.
8. You Want to Have a Fresh Start
Entrepreneurs have other motivations to sell their business and one of these is the desire to start a new one. Some entrepreneurs go into business because they want to start and build something bold and take a risk. This is what drives their spirit. If a business has already reached a certain point of growth and stability, some entrepreneurs just want to move forward, sell the business to cash out their hard work, and start something new and exciting. Although you need to plan on staying a year or two with the buyer in order to get a deal done, starting the sale process now will get you to your goal sooner.
9. You Need More Time for Your Personal Life
At some point, as a business owner you will finally realize that running a business takes too much of your time. When the time comes that you will need more time for your family, to take care of your health and/or your personal life, then selling your business is a good way to do it. 
10. Your Overall Exit Strategy Is to Sell Your Business
There are business owners who invest in building a thriving business to eventually sell later on at an optimal time for a huge sum of money. If this is your purpose for starting the business in the first place, then it's a great reason to sell the business as soon as you have reached your desired growth. Having an exit strategy is critical to every business, and CEO Advisor, Inc. can help you to discuss your options, formulate an exit strategy, prepare for the sale of your business, and execute the sale process at the proper time.
 
11. You Want to Retire
The majority of entrepreneurs plan to sell their business as an exit strategy to provide a comfortable retirement. Most business owners plan to sell their business rather than keep it in the family or hire someone to run it in their place when they retire as this is very risky. The driving force for this stems from the lifestyle many entrepreneurs face and lack of savings for retirement.
12. You've Achieved Long-Term Financial Security
One reason to sell your business is if you have achieved a certain level of financial security from running the business and you want to step down and start a less stressful lifestyle. You don't need to fully retire to do this, as you can take on a temporary lesser role or a consulting role after an acquisition. There are often options such as a majority sale to a Private Equity firm, and CEO Advisor, Inc. has the expertise to manage this for you. At this point, you want to sell all or a majority of your business when valuations are peaking.
13. You Feel Physically & Mentally Exhausted
As a business owner, you are most likely the hub of your business and make most of the decisions. This can be physically and mentally draining, and the time will come when your responsibilities as a CEO or business owner will take its toll on you. If you feel physically and mentally exhausted running the business, then it's time for you to initiate an exit and sale process. Don't wait until an illness or excessive fatigue sets in before you decide to sell, as the buyer will fully expect you to remain with the company for 1 - 2 years.
14. You Want to Take Advantage of Low Capital Gains Taxes
The tax rate on capital gains is at an historically low level. This is one good reason to sell your business and enjoy low tax rates if you can achieve a straight stock purchase. If you are at an age near retirement, or if you have already grown and stabilized your business, then it may be best to sell your business and take advantage of taxes at such relatively low levels.
15. You've Become More Risk-Averse
Risk is essential to your business' continued growth. If you have become risk averse, and you get to the point that new opportunities invoke more fear than excitement, it is a sign that you should sell your business. Becoming too conservative means losing your drive to grow the business, and this alone is a good reason to sell.
16. Your Business Partner Wants to Sell
If your business partner wants to call it quits and move on, you have the option to either buy out his/her shares and own the business entirely, or just sell the business to a third-party. Most of the time, the second option is more prudent because you may not have the capital or want to borrow substantial funds to buyout your partner.
17. A Sudden Lifestyle Change Affects Your Business
CEOs and business owners need to understand that there should be a clear delineation between their personal lives and their business. If a sudden lifestyle change (like getting married, divorce, health issues, going back to school, or giving birth) becomes a conflict with your commitment to your business, then it's time to consider selling.
18. You Struggle with Poor Business Performance
Running a struggling business can be very stressful and demotivating. If you notice that your business' performance doesn't improve, even after you have exerted a lot of effort and invested many resources to grow the business, then perhaps it's time to consider selling it to someone who has the skills and money to revive and grow it. Just don't expect to secure an optimal sale price or terms.
19. Your Business' Industry Is Thriving or You See a Decline Looming
If your business' industry is thriving, it's a good time to sell your business. A business in a thriving industry will likely sell for more than if your business' industry is struggling. You can take this opportunity to sell your business while there are more acquirers interested in buying it at a good price. It's important to pay attention to industry trends, as it will benefit you when you decide to sell.
20. You Have Health Issues or You are in Your Sixties with Previous Health Issues
If you think your business has cost you your health, then it's time to seriously consider selling it. Facing serious health issues is one of the most common reasons why some business owners choose to sell their business. After all, it's best to prioritize your health, and capitalize on today's lofty valuations.
Bottom Line - When to Sell a Business
There will come a time when you will need to sell your company. The right time to sell a business is based on various reasons, such as economic conditions, industry trends, valuations, personal situations, and professional considerations.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
There are different reasons why business owners choose to sell their business. There will come a time when selling it might be the best decision you can make. Valuations are very high currently so this can be a tremendous opportunity for any business. 
As an industry expert on mergers and acquisitions, CEO Advisor, Inc. can help you identify the optimal time to sell your business.
Below are the 20 common reasons for when to sell your business:
1. Your Business' Value Has Improved Significantly
When your business has grown substantially, it can be the optimal time to sell. Running a business is risky, and the bigger you get, the larger the risks you have to face. The value of your business is not liquid until you go through the transaction of selling your company and realizing the opportunity.
2. You Receive an Offer Too Good to Turn Down
If a buyer presents you with an offer you can't refuse, it can be ample reason to accept and sell your business. Such an offer is usually priced way above the market value of your business. This kind of offer is rare, so you wouldn't want to pass it up because you may not get another one like it in the future. Your optimal method is to prepare for and initiate a sale process to many potential buyers, but you never know when a serious buyer is going to knock on your door.
3. You Don't Have the Energy, Skills, or Capital to Grow the Business
One primary reason to sell a business is that you don't have the energy, time, experience, skills, and capital to take the business to the next level. A business should continually grow, and as business owners, there will come a time when you'll feel you can't generate substantial growth. This is the right time to sell your business and entrust it to those who have the skills and resources to grow it to the next level.
4. You Experience Fatigue or Lack of Alignment
If you got into a business for the wrong reasons or the market opportunity has changed dramatically, you will eventually experience a certain level of exhaustion that will no longer be healthy for you physically, emotionally, and mentally. If you think that there is no quick fix for the burnout you feel, then it's time to sell and realize the opportunity of today's extremely high valuations.
5. Your Business Has Substantial Sales Growth
One reason entrepreneurs choose to sell their business is that it has experienced substantial growth. This is extremely appealing to buyers and you can gain a higher valuation from the sale. Some business owners just want to take a lump sum of money from the sale, and the best time to do this is when you can show substantial and consistent sales growth and earnings.
6. Your Personal Interests Change
After years of running and growing your business, you may conclude it doesn't feel as interesting and exciting as when you started it, and you're losing your passion in your business. This is a sign that you should consider selling it. Over time, it's normal for your interests to change, and you should capitalize on the right opportunity to sell.
7. Your Business Doesn't Have the Capital to Grow or Survive Long-Term in a Highly Competitive Market
Private small and mid-size businesses are highly illiquid and risky assets. Without adequate capital, you can't realize the full potential of your business. If you need more liquidity and are presented with the possibility of selling your business, you should consider this opportunity. This can be more advantageous today given the high valuations.
8. You Want to Have a Fresh Start
Entrepreneurs have other motivations to sell their business and one of these is the desire to start a new one. Some entrepreneurs go into business because they want to start and build something bold and take a risk. This is what drives their spirit. If a business has already reached a certain point of growth and stability, some entrepreneurs just want to move forward, sell the business to cash out their hard work, and start something new and exciting. Although you need to plan on staying a year or two with the buyer in order to get a deal done, starting the sale process now will get you to your goal sooner.
9. You Need More Time for Your Personal Life
At some point, as a business owner you will finally realize that running a business takes too much of your time. When the time comes that you will need more time for your family, to take care of your health and/or your personal life, then selling your business is a good way to do it. 
10. Your Overall Exit Strategy Is to Sell Your Business
There are business owners who invest in building a thriving business to eventually sell later on at an optimal time for a huge sum of money. If this is your purpose for starting the business in the first place, then it's a great reason to sell the business as soon as you have reached your desired growth. Having an exit strategy is critical to every business, and CEO Advisor, Inc. can help you to discuss your options, formulate an exit strategy, prepare for the sale of your business, and execute the sale process at the proper time.
 
11. You Want to Retire
The majority of entrepreneurs plan to sell their business as an exit strategy to provide a comfortable retirement. Most business owners plan to sell their business rather than keep it in the family or hire someone to run it in their place when they retire as this is very risky. The driving force for this stems from the lifestyle many entrepreneurs face and lack of savings for retirement.
12. You've Achieved Long-Term Financial Security
One reason to sell your business is if you have achieved a certain level of financial security from running the business and you want to step down and start a less stressful lifestyle. You don't need to fully retire to do this, as you can take on a temporary lesser role or a consulting role after an acquisition. There are often options such as a majority sale to a Private Equity firm, and CEO Advisor, Inc. has the expertise to manage this for you. At this point, you want to sell all or a majority of your business when valuations are peaking.
13. You Feel Physically & Mentally Exhausted
As a business owner, you are most likely the hub of your business and make most of the decisions. This can be physically and mentally draining, and the time will come when your responsibilities as a CEO or business owner will take its toll on you. If you feel physically and mentally exhausted running the business, then it's time for you to initiate an exit and sale process. Don't wait until an illness or excessive fatigue sets in before you decide to sell, as the buyer will fully expect you to remain with the company for 1 - 2 years.
14. You Want to Take Advantage of Low Capital Gains Taxes
The tax rate on capital gains is at an historically low level. This is one good reason to sell your business and enjoy low tax rates if you can achieve a straight stock purchase. If you are at an age near retirement, or if you have already grown and stabilized your business, then it may be best to sell your business and take advantage of taxes at such relatively low levels.
15. You've Become More Risk-Averse
Risk is essential to your business' continued growth. If you have become risk averse, and you get to the point that new opportunities invoke more fear than excitement, it is a sign that you should sell your business. Becoming too conservative means losing your drive to grow the business, and this alone is a good reason to sell.
16. Your Business Partner Wants to Sell
If your business partner wants to call it quits and move on, you have the option to either buy out his/her shares and own the business entirely, or just sell the business to a third-party. Most of the time, the second option is more prudent because you may not have the capital or want to borrow substantial funds to buyout your partner.
17. A Sudden Lifestyle Change Affects Your Business
CEOs and business owners need to understand that there should be a clear delineation between their personal lives and their business. If a sudden lifestyle change (like getting married, divorce, health issues, going back to school, or giving birth) becomes a conflict with your commitment to your business, then it's time to consider selling.
18. You Struggle with Poor Business Performance
Running a struggling business can be very stressful and demotivating. If you notice that your business' performance doesn't improve, even after you have exerted a lot of effort and invested many resources to grow the business, then perhaps it's time to consider selling it to someone who has the skills and money to revive and grow it. Just don't expect to secure an optimal sale price or terms.
19. Your Business' Industry Is Thriving or You See a Decline Looming
If your business' industry is thriving, it's a good time to sell your business. A business in a thriving industry will likely sell for more than if your business' industry is struggling. You can take this opportunity to sell your business while there are more acquirers interested in buying it at a good price. It's important to pay attention to industry trends, as it will benefit you when you decide to sell.
20. You Have Health Issues or You are in Your Sixties with Previous Health Issues
If you think your business has cost you your health, then it's time to seriously consider selling it. Facing serious health issues is one of the most common reasons why some business owners choose to sell their business. After all, it's best to prioritize your health, and capitalize on today's lofty valuations.
Bottom Line - When to Sell a Business
There will come a time when you will need to sell your company. The right time to sell a business is based on various reasons, such as economic conditions, industry trends, valuations, personal situations, and professional considerations.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
There are different reasons why business owners choose to sell their business. There will come a time when selling it might be the best decision you can make. Valuations are very high currently so this can be a tremendous opportunity for any business. 

As an industry expert on mergers and acquisitions, CEO Advisor, Inc. can help you identify the optimal time to sell your business.

Below are the 20 common reasons for when to sell your business:

1. Your Business' Value Has Improved Significantly
When your business has grown substantially, it can be the optimal time to sell. Running a business is risky, and the bigger you get, the larger the risks you have to face. The value of your business is not liquid until you go through the transaction of selling your company and realizing the opportunity.

2. You Receive an Offer Too Good to Turn Down
If a buyer presents you with an offer you can't refuse, it can be ample reason to accept and sell your business. Such an offer is usually priced way above the market value of your business. This kind of offer is rare, so you wouldn't want to pass it up because you may not get another one like it in the future. Your optimal method is to prepare for and initiate a sale process to many potential buyers, but you never know when a serious buyer is going to knock on your door.

3. You Don't Have the Energy, Skills, or Capital to Grow the Business
One primary reason to sell a business is that you don't have the energy, time, experience, skills, and capital to take the business to the next level. A business should continually grow, and as business owners, there will come a time when you'll feel you can't generate substantial growth. This is the right time to sell your business and entrust it to those who have the skills and resources to grow it to the next level.

4. You Experience Fatigue or Lack of Alignment
If you got into a business for the wrong reasons or the market opportunity has changed dramatically, you will eventually experience a certain level of exhaustion that will no longer be healthy for you physically, emotionally, and mentally. If you think that there is no quick fix for the burnout you feel, then it's time to sell and realize the opportunity of today's extremely high valuations.

5. Your Business Has Substantial Sales Growth
One reason entrepreneurs choose to sell their business is that it has experienced substantial growth. This is extremely appealing to buyers and you can gain a higher valuation from the sale. Some business owners just want to take a lump sum of money from the sale, and the best time to do this is when you can show substantial and consistent sales growth and earnings.

6. Your Personal Interests Change
After years of running and growing your business, you may conclude it doesn't feel as interesting and exciting as when you started it, and you're losing your passion in your business. This is a sign that you should consider selling it. Over time, it's normal for your interests to change, and you should capitalize on the right opportunity to sell.

7. Your Business Doesn't Have the Capital to Grow or Survive Long-Term in a Highly Competitive Market
Private small and mid-size businesses are highly illiquid and risky assets. Without adequate capital, you can't realize the full potential of your business. If you need more liquidity and are presented with the possibility of selling your business, you should consider this opportunity. This can be more advantageous today given the high valuations.

8. You Want to Have a Fresh Start
Entrepreneurs have other motivations to sell their business and one of these is the desire to start a new one. Some entrepreneurs go into business because they want to start and build something bold and take a risk. This is what drives their spirit. If a business has already reached a certain point of growth and stability, some entrepreneurs just want to move forward, sell the business to cash out their hard work, and start something new and exciting. Although you need to plan on staying a year or two with the buyer in order to get a deal done, starting the sale process now will get you to your goal sooner.

9. You Need More Time for Your Personal Life
At some point, as a business owner you will finally realize that running a business takes too much of your time. When the time comes that you will need more time for your family, to take care of your health and/or your personal life, then selling your business is a good way to do it. 

10. Your Overall Exit Strategy Is to Sell Your Business
There are business owners who invest in building a thriving business to eventually sell later on at an optimal time for a huge sum of money. If this is your purpose for starting the business in the first place, then it's a great reason to sell the business as soon as you have reached your desired growth. Having an exit strategy is critical to every business, and CEO Advisor, Inc. can help you to discuss your options, formulate an exit strategy, prepare for the sale of your business, and execute the sale process at the proper time.
 
11. You Want to Retire
The majority of entrepreneurs plan to sell their business as an exit strategy to provide a comfortable retirement. Most business owners plan to sell their business rather than keep it in the family or hire someone to run it in their place when they retire as this is very risky. The driving force for this stems from the lifestyle many entrepreneurs face and lack of savings for retirement.

12. You've Achieved Long-Term Financial Security
One reason to sell your business is if you have achieved a certain level of financial security from running the business and you want to step down and start a less stressful lifestyle. You don't need to fully retire to do this, as you can take on a temporary lesser role or a consulting role after an acquisition. There are often options such as a majority sale to a Private Equity firm, and CEO Advisor, Inc. has the expertise to manage this for you. At this point, you want to sell all or a majority of your business when valuations are peaking.

13. You Feel Physically & Mentally Exhausted
As a business owner, you are most likely the hub of your business and make most of the decisions. This can be physically and mentally draining, and the time will come when your responsibilities as a CEO or business owner will take its toll on you. If you feel physically and mentally exhausted running the business, then it's time for you to initiate an exit and sale process. Don't wait until an illness or excessive fatigue sets in before you decide to sell, as the buyer will fully expect you to remain with the company for 1 - 2 years.

14. You Want to Take Advantage of Low Capital Gains Taxes
The tax rate on capital gains is at an historically low level. This is one good reason to sell your business and enjoy low tax rates if you can achieve a straight stock purchase. If you are at an age near retirement, or if you have already grown and stabilized your business, then it may be best to sell your business and take advantage of taxes at such relatively low levels.

15. You've Become More Risk-Averse
Risk is essential to your business' continued growth. If you have become risk averse, and you get to the point that new opportunities invoke more fear than excitement, it is a sign that you should sell your business. Becoming too conservative means losing your drive to grow the business, and this alone is a good reason to sell.

16. Your Business Partner Wants to Sell
If your business partner wants to call it quits and move on, you have the option to either buy out his/her shares and own the business entirely, or just sell the business to a third-party. Most of the time, the second option is more prudent because you may not have the capital or want to borrow substantial funds to buyout your partner.

17. A Sudden Lifestyle Change Affects Your Business
CEOs and business owners need to understand that there should be a clear delineation between their personal lives and their business. If a sudden lifestyle change (like getting married, divorce, health issues, going back to school, or giving birth) becomes a conflict with your commitment to your business, then it's time to consider selling.

18. You Struggle with Poor Business Performance
Running a struggling business can be very stressful and demotivating. If you notice that your business' performance doesn't improve, even after you have exerted a lot of effort and invested many resources to grow the business, then perhaps it's time to consider selling it to someone who has the skills and money to revive and grow it. Just don't expect to secure an optimal sale price or terms.

19. Your Business' Industry Is Thriving or You See a Decline Looming
If your business' industry is thriving, it's a good time to sell your business. A business in a thriving industry will likely sell for more than if your business' industry is struggling. You can take this opportunity to sell your business while there are more acquirers interested in buying it at a good price. It's important to pay attention to industry trends, as it will benefit you when you decide to sell.

20. You Have Health Issues or You are in Your Sixties with Previous Health Issues
If you think your business has cost you your health, then it's time to seriously consider selling it. Facing serious health issues is one of the most common reasons why some business owners choose to sell their business. After all, it's best to prioritize your health, and capitalize on today's lofty valuations.

Bottom Line - When to Sell a Business
There will come a time when you will need to sell your company. The right time to sell a business is based on various reasons, such as economic conditions, industry trends, valuations, personal situations, and professional considerations.

Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.

Selling your business is a tedious process that requires preparation, planning and expertise. If selling your business is a priority in the next 6 - 18 months, preparing for a successful sale is a very important part of the sale process. To maximize the value of your business, you’ll need to plan, prepare and assemble a team of advisors well in advance. CEO Advisor, Inc. specializes in both buy-side and sell-side mergers and acquisitions services, including the following ten items. Your team should also include a seasoned corporate/transaction attorney and a CPA/ tax advisor.

Focus on the following 10 items to gear up for the sale of your business:

1. Put Together the Right Team of Advisors as a First Step
Unless you have previously managed the sale of a business from A – Z at least 3 times, you should not try to sell your own business. In fact, you should never try to sell your own business for many reasons. If you wouldn't sell your own house – which is an extremely simple process compared to selling a business – then don’t pretend to have the expertise, experience and time to sell your own business. Hire an M&A advisor like CEO Advisor, Inc. to advise you and manage the entire sale process.

2. Prepare in Order to Maximize Value
CEO Advisor, Inc. has over 3 decades of M&A advisory experience. We provide a full service from preparation to closing. 

Focus on these areas and others with an M&A advisor in preparation of a successful sale process:

  • Business Structure: Cleaning up the Capitalization Table can simplify the transaction and avoid problems when the business is sold.
  • Management Team and Key Employees: Your key management team members are critical to selling your company. What will keep them from leaving, or competing with the business? Will they have an incentive to stay and help the business be successful after the sale? Review any key employment contracts to make sure your management team will work toward a successful sale.
  • Financial Reporting: Are your financial statements clean and up to date? Do they reflect the latest GAAP accounting methods? Have you considered audited financials by a respected CPA firm? 
  • Intellectual Property: Is it clear who owns your IP? Ownership ambiguity often diminishes value and creates bumpy negotiations with a buyer or investor. Intellectual assets are often the most important asset in your company (other than your key people). 
  • Management Presentation: Optimize the value by creating a Teaser presentation and a comprehensive Management presentation to inform and educate potential buyers on the full value of your business.

3. Be Ready for Due Diligence
Due Diligence is an extremely intense and rigorous process. You will be expected to provide a lot of information about your company to the prospective buyer in a very organized and systematic process. Preparing in advance and placing certain information in a virtual data room will greatly enhance your value and sale process. Your M&A advisor will advise you and manage the entire preparation process in advance of Due Diligence, as well as, the entire Due Diligence process.

4. Understand the Value of Your Business from a Market Perspective
It's very common for a business owner to fixate on a sale price in advance. There are several ways to approximate business value and comparables of similar sold companies can be extremely helpful. It’s important to determine who the likely buyers are and why they would want to buy your business. Your M&A advisor will provide reports with comparable sold companies to assist you in understanding valuations. 

5. Understand Your Key Metrics
All businesses track metrics and face operational issues along the way. It can be difficult to be completely objective. You and your M&A advisor need to make realistic assessments and track key metrics. This will better position the company for a successful sale. Make sure that you address the operational weaknesses. This allows you to better plan how best to disclose and control your message to potential buyers.

6. Control the Sale Process to a Great Degree
Using the experience and expertise of your M&A advisor, define your list of targeted prospective buyers. Prepare and have a plan for an optimal exit. Create a LOI template for the buyer to use and set deadlines for both Indication of Interest letters and Letters of Intent. Manage and control the Due Diligence process and get sign off on the Due Diligence process before getting sucked into the legal contracts, time and expense wise. Use what leverage you have as a seller to close timely and on your terms.

7. Make Sure Your Management Team Stays Focused on the Business 
It is all too common for buyers to come back to the table right before the deal closes to ask for a price concession because the financial results for the months just prior to closing didn't meet the Forecast. The primary cause of the weaker results is because everyone on the management team was focused on the deal instead of on running the business. Make sure you assign who is managing the business and who is working on the transaction. This is another advantage to using an outside M&A advisor. Your management team may be seasoned at growing and operating your business, but the odds are they are not skilled at selling a business, and this can lead to a disastrous result absent the expertise and experience of an M&A advisor.

8. Consider Your Situation Post-Deal
You should go into the sale process by planning on working for the buyer for at least 2 years. Your plan to sell should anticipate the extent to which you wish to give up control of the company, as well. These are just some of the considerations that you need to evaluate long before completing a deal, and your M&A advisor should lay out your options for you. If you wish to continue to lead the company or retain some upside opportunity after a deal, make sure a clear Earn Out or stock participation is in writing, and that they are reviewed by your transaction attorney.

9. Consider Your Tax Exposure Well In Advance of a Deal
The largest impact on a primary shareholder will be on the deal structure, especially an Asset sale vs. a Stock sale. An Asset sale benefits the buyer in both protection against liabilities and in taxes, but a Stock sale is highly advantageous to you tax wise as a seller. The purchase price and the amount of cash received at closing are also major factors from a tax perspective. There are many tax issues that come into play and your M&A advisor will provide business advice and your tax advisor will provide tax advice to save you substantial money.

10. Have a Solid Post‐Sale Personal Financial Plan
Your business may be your most valuable asset. Seek advice on how you will invest the proceeds to make sure you have adequate assets to reach your long‐term financial goals. Your plan should consider the following:

  • The projected tax to you on an Asset sale vs a Stock sale.
  • Whether you should take more cash at closing, accept any stock or consider an Earn Out and for how long.
  • How will you fund the tax liability associated with the deal?
  • How should the proceeds be invested to replace the income from operating the business?

You’ve worked extremely hard to create a successful business. Selling your business is a rigorous task. The rewards for early and careful planning will be well worth the effort and pay huge dividends.

Contact Mark Hartsell, MBA, President of CEO Advisor, Inc., for a free initial business consultation at (949) 629-2520, by mobile phone (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us today at www.CEOAdvisor.com for more information.


Here are 10 reasons why you shouldn't attempt to do it yourself:
10. Maintaining Confidentiality. 
Maintaining a certain level of confidentiality across 75 to 100 targeted buyers is essential when selling your business. How do you maintain confidentiality while marketing to your potential buyers? You can't. You need an intermediary between you and the buyer. An M&A professional who is not involved with the business, contacts your targeted buyers, qualifies buyers, provides select amount of information and puts you in a strong, competitive position to sell.
Here are 10 reasons why you shouldn't attempt to do it yourself:
Here are 10 reasons why you shouldn't attempt to do it yourself:
10. Maintaining Confidentiality. 
Maintaining a certain level of confidentiality across 75 to 100 targeted buyers is essential when selling your business. How do you maintain confidentiality while marketing to your potential buyers? You can't. You need an intermediary between you and the buyer. An M&A professional who is not involved with the business, contacts your targeted buyers, qualifies buyers, provides select amount of information and puts you in a strong, competitive position to sell.
Selling your business is extremely complex, requires a tremendous amount of time, preparation and follow through, organization and skill, and is one of those things that requires the experience of a business, finance, and M&A professional all in one.
Here are 10 reasons why you shouldn't attempt to do it yourself:
10. Maintaining Confidentiality. 
Maintaining a certain level of confidentiality across 75 to 100 targeted buyers is essential when selling your business. How do you maintain confidentiality while marketing to your potential buyers? You can't. You need an intermediary between you and the buyer. An M&A professional who is not involved with the business, contacts your targeted buyers, qualifies buyers, provides select amount of information and puts you in a strong, competitive position to sell.
9. You May Not be Dealing with the Optimal Buyers. 
Because of the large task of selling your company, many business owners selling their own business are dealing with buyers who happen to approach them. In many cases, these buyers are savvy business owners, in the same industry, looking to buy a business on the cheap or are very experienced at buying businesses. These types of buyers typically do not make the best offer nor are they financially qualified to buy the business.
8. It Involves an Extensive Amount of Time Better Spent Running Your Business. 
Selling a business takes a tremendous amount of time, organization, and a sale process that generates results. The  preparation alone to launch the process and generate multiple offers takes a lot of time (and expertise). Dealing with multiple potential buyers takes time. Meanwhile, you're trying to run the business and live your life. Do you really have the extra time to spend your precious hours selling your business when an expert should do it for you?
7. You Lack the Expertise and Experience in Selling a Business.  
Selling your business is not as simple as selling a property, and a business requires several types of expertise. You need to prepare information and reporting, and be very knowledgeable about financial statements and how businesses are valued. You need to know how to conduct the Due Diligence process and assist in the many business and tax issues that arise in the legal process when selling a business. You need to know what you can do, what your M&A advisor should do, what your tax advisor should do and what your corporate/transaction attorney should do to keep the buyer engaged and on track to get the deal completed.
You may have a very good attorney and accountant, but they do not have the same expertise as an M&A advisor to prepare the needed information to initiate the sale process, solicit offers from a pool of many selected potential buyers, secure offers from these buyers and conduct the Due Diligence process when it comes to selling a business.
6. Representing and Selling Yourself Typically Backfires. 
If you don't have the time, expertise, experience, great organization and sales skills, you definitely should not be selling your own business. But, even if you are a good salesperson, there is another good reason not to sell your own business. The more you pursue a buyer, the more you are sending a message that you are anxious or desperate to sell, which will tend to make the buyer think that they can pay less for the business. Since it is an M&A advisor's job to pursue buyers, doing so doesn't send the same message.
5. Your Sale Process and Marketing Doesn't Stack Up to an M&A Advisor. 
Sure, you can entertain a single offer from a company that contacts you but they will know that they are the only interested party, which puts you in a very disadvantageous negotiating position. You can also advertise on a few of the Internet business-for-sale websites, but a strong, experienced M&A advisor has a very disciplined, targeted approach with many pre-existing contacts and a staff to research and pinpoint all of the top potential buyers of your business. The result is that an M&A advisor will reach far more buyers resulting in a much higher probability of a completed sale, a faster sale and at a higher price with better terms.
4. An M&A Advisor Acts as a Buffer. 
Buying or selling a business is very stressful, takes hundreds of steps and may be the most valuable asset that you own. During the sale process, the buyer and seller are likely to get upset with each other and things may be said that would kill the deal if they were said directly to the other party. The M&A advisor is a buffer between the parties that prevents these deal-killers by implementing an element of Good Cop (you) and Bad Cop (M&A advisor) to perform the tougher negotiations and keep you in a strong standing with the buyer and your future boss.
3. The Sale Process is Much More Than a Couple of Meetings and Accepting an Offer. 
Accepting an offer to sell your business is only one aspect of the sale process and closing the sale. The sale process includes a plan, researching and documenting the potential buyers, creating and housing all of the preparation materials that will attract and secure a strong offer, negotiating and finalizing the offer, a complete Due Diligence process, overcoming any tax issues, typically negotiating a lease with the landlord, and working through all of the purchase agreement and employment agreement issues.
2. You Need a Trusted Advisor. 
Your attorney and accountant may be very skilled and knowledgeable, but most don't commit the needed time, don't focus on a goal of securing multiple offers, and don't have the knowledge about the marketplace and selling businesses that is needed to be successful.  
Attorneys and accountants react to an offer that is secured. A hands-on M&A advisor will advise you throughout the process and help you avoid making a major mistake that will cost you a ton of money or that will jeopardize the sale altogether. Also, a buyer is more willing to accept what an M&A advisor recommends since the prospective buyer will have developed a relationship with the M&A advisor from the first phone call initiated to the buyer, rather than what your attorney or accountant desire, who are typically pressing on a legal or tax issue.
1. Selling Your Business Faster For the Best Price. 
This reason alone should be enough to move any seller to using an M&A advisor. Selling a business is both tedious and stressful, and the only reason to undertake such an endeavor on your own would be to save money. But when it comes to selling a business, do-it-yourselfers typically get a lower price for their business and most don't get a transaction done at all. Why is that? An M&A advisor will reach a greater number of prospective buyers who know they must compete on price. Because they widen the field, an M&A advisor more than makes up for their fees with a proven sale process, higher sales price and better terms, providing the seller with a higher take-home figure.
Some sellers attempt to sell their own business, only to find the sale process is much more complicated and time consuming than they anticipated. Business deals are complex transactions that require expertise well beyond what the typical CEO or business owner has.
An M&A advisor is an expert and your trusted business advisor, your marketing team, and your expert negotiator all wrapped up in one.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Selling your business is extremely complex, requires a tremendous amount of time, preparation and follow through, organization and skill, and is one of those things that requires the experience of a business, finance, and M&A professional all in one.
Here are 10 reasons why you shouldn't attempt to do it yourself:
10. Maintaining Confidentiality. 
Maintaining a certain level of confidentiality across 75 to 100 targeted buyers is essential when selling your business. How do you maintain confidentiality while marketing to your potential buyers? You can't. You need an intermediary between you and the buyer. An M&A professional who is not involved with the business, contacts your targeted buyers, qualifies buyers, provides select amount of information and puts you in a strong, competitive position to sell.
9. You May Not be Dealing with the Optimal Buyers. 
Because of the large task of selling your company, many business owners selling their own business are dealing with buyers who happen to approach them. In many cases, these buyers are savvy business owners, in the same industry, looking to buy a business on the cheap or are very experienced at buying businesses. These types of buyers typically do not make the best offer nor are they financially qualified to buy the business.
8. It Involves an Extensive Amount of Time Better Spent Running Your Business. 
Selling a business takes a tremendous amount of time, organization, and a sale process that generates results. The  preparation alone to launch the process and generate multiple offers takes a lot of time (and expertise). Dealing with multiple potential buyers takes time. Meanwhile, you're trying to run the business and live your life. Do you really have the extra time to spend your precious hours selling your business when an expert should do it for you?
7. You Lack the Expertise and Experience in Selling a Business.  
Selling your business is not as simple as selling a property, and a business requires several types of expertise. You need to prepare information and reporting, and be very knowledgeable about financial statements and how businesses are valued. You need to know how to conduct the Due Diligence process and assist in the many business and tax issues that arise in the legal process when selling a business. You need to know what you can do, what your M&A advisor should do, what your tax advisor should do and what your corporate/transaction attorney should do to keep the buyer engaged and on track to get the deal completed.
You may have a very good attorney and accountant, but they do not have the same expertise as an M&A advisor to prepare the needed information to initiate the sale process, solicit offers from a pool of many selected potential buyers, secure offers from these buyers and conduct the Due Diligence process when it comes to selling a business.
6. Representing and Selling Yourself Typically Backfires. 
If you don't have the time, expertise, experience, great organization and sales skills, you definitely should not be selling your own business. But, even if you are a good salesperson, there is another good reason not to sell your own business. The more you pursue a buyer, the more you are sending a message that you are anxious or desperate to sell, which will tend to make the buyer think that they can pay less for the business. Since it is an M&A advisor's job to pursue buyers, doing so doesn't send the same message.
5. Your Sale Process and Marketing Doesn't Stack Up to an M&A Advisor. 
Sure, you can entertain a single offer from a company that contacts you but they will know that they are the only interested party, which puts you in a very disadvantageous negotiating position. You can also advertise on a few of the Internet business-for-sale websites, but a strong, experienced M&A advisor has a very disciplined, targeted approach with many pre-existing contacts and a staff to research and pinpoint all of the top potential buyers of your business. The result is that an M&A advisor will reach far more buyers resulting in a much higher probability of a completed sale, a faster sale and at a higher price with better terms.
4. An M&A Advisor Acts as a Buffer. 
Buying or selling a business is very stressful, takes hundreds of steps and may be the most valuable asset that you own. During the sale process, the buyer and seller are likely to get upset with each other and things may be said that would kill the deal if they were said directly to the other party. The M&A advisor is a buffer between the parties that prevents these deal-killers by implementing an element of Good Cop (you) and Bad Cop (M&A advisor) to perform the tougher negotiations and keep you in a strong standing with the buyer and your future boss.
3. The Sale Process is Much More Than a Couple of Meetings and Accepting an Offer. 
Accepting an offer to sell your business is only one aspect of the sale process and closing the sale. The sale process includes a plan, researching and documenting the potential buyers, creating and housing all of the preparation materials that will attract and secure a strong offer, negotiating and finalizing the offer, a complete Due Diligence process, overcoming any tax issues, typically negotiating a lease with the landlord, and working through all of the purchase agreement and employment agreement issues.
2. You Need a Trusted Advisor. 
Your attorney and accountant may be very skilled and knowledgeable, but most don't commit the needed time, don't focus on a goal of securing multiple offers, and don't have the knowledge about the marketplace and selling businesses that is needed to be successful.  
Attorneys and accountants react to an offer that is secured. A hands-on M&A advisor will advise you throughout the process and help you avoid making a major mistake that will cost you a ton of money or that will jeopardize the sale altogether. Also, a buyer is more willing to accept what an M&A advisor recommends since the prospective buyer will have developed a relationship with the M&A advisor from the first phone call initiated to the buyer, rather than what your attorney or accountant desire, who are typically pressing on a legal or tax issue.
1. Selling Your Business Faster For the Best Price. 
This reason alone should be enough to move any seller to using an M&A advisor. Selling a business is both tedious and stressful, and the only reason to undertake such an endeavor on your own would be to save money. But when it comes to selling a business, do-it-yourselfers typically get a lower price for their business and most don't get a transaction done at all. Why is that? An M&A advisor will reach a greater number of prospective buyers who know they must compete on price. Because they widen the field, an M&A advisor more than makes up for their fees with a proven sale process, higher sales price and better terms, providing the seller with a higher take-home figure.
Some sellers attempt to sell their own business, only to find the sale process is much more complicated and time consuming than they anticipated. Business deals are complex transactions that require expertise well beyond what the typical CEO or business owner has.
An M&A advisor is an expert and your trusted business advisor, your marketing team, and your expert negotiator all wrapped up in one.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.

Testimonial  


"Mark Hartsell and CEO Advisor provided amazing hands-on guidance from the start of the sale process through to the closing. Not having sold a company before I was not aware of the complexity, and tremendous amount of time and expertise required by someone like Mark to prepare for the sale, locate a qualified buyer, negotiate a strong offer, perform the extensive due diligence process, and drive the process through to legal contracts and closing. CEO Advisor, Inc. was the catalyst in achieving a highly successful sale."

CEO
Professional Services Company (After Their Successful Sale)

CEO/President, Engineering Services/Manufacturing Company


Whether it is growing a business to the next level, turning a distressed company around or preparing a company for an exit, Mark's firm, CEO Advisor, Inc, provides a broad range of services and Mark is there for the CEO every step of the way."

 


Partner

Haynes & Boone, LLP

Words of Wisdom


"If you look really closely, most overnight successes take a long time".

 

 

Steve Jobs

Former CEO of Apple