One of the most important aspects of running a business is knowing when to get out. You also have to make sure you have made your business attractive to potential buyers, nut more importantly to bankers who don’t know anything beyond their checklists. You need to have the repayment capacity of the loans built into the business when you are selling it. So the bankers can see it. without too much trouble.
I currently have four clients in various stages of selling their businesses.
All four are looking to retire, and it is taking far longer than any of them thought it would take.
One had multiple offers, but went with employees, it is taking forever since they are young with no money.
Another, keeps getting only low ball offers, or just wanting the building. I told him to sell the building for the joint price. No takers on that play.
One should close in August, which if the last up for sale and the first to close.
Financing seems to be the real problem with all of these deals, banks are reluctant to do deals so the SBA is involved with most of them, and they take forever are the fees are killers.
If you plan on selling, identify buyers internally ASAP and expect a prolonged process. If looking externally, do not ever self finance, unless you want to retake the business after it has been damaged. I have seen this twice.
Take the money and run, do not accept claw backs. Make sure you have a great attorney watching your back.
My last purchase with an attorney was only looking at their fee and not my best interests. They are no longer my attorneys.