+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
Unlike their parents and grandparents who waited till their 60s to exit their businesses, today’s “cash-out generation” of entrepreneurs exit their successful businesses in their 40s, often to pursue new business ventures.
The key to a smooth and successful exit for this cash-out generation is early planning. The day you start your own business is the day you should define the personal and financial goals needed to establish an exit plan. Without goals and a good plan in place, it is unlikely that you as an entrepreneur will be able to exit when you want — and for the money you want. Once the exit plan is in place, you should review it annually so you can stay on top of your progress toward personal and financial objectives.
Several questions you might have regarding the exit plan are: When should I sell the business? Whom should I sell the business to? Who should be involved in the process?
The best time to sell a business is when you have attained your definition of financial independence or when you feel financially and emotionally ready to embark on a new business venture. When the right time comes, you will have several options as far as to whom to sell the business.
Candidates include third-party buyers, key employees, or family members. A third-party sale is usually the most successful, because it enables you to negotiate the highest possible purchase price while giving you financial flexibility and improved probability of closing the deal.
Deciding to Sell Your Business: The Key to Wealth and Freedom
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.