Today, when we talk about selling your business, we’re really talking about a wide breadth of options. This is not an all-or-nothing scenario—you can sell all of the business, or just some of it. You can sell it all but stay on as an employee or a consultant. You can sell to a private equity firm and to your kids at the same time. There are so many options.
And your local competitors are usually not the only buyers at the table. According to the Market Pulse Report sponsored by IBBA and the M&A Source, if your business is valued $10 million or more, you have about 75% chance that your buyer will come from over 100 miles away.
How well do you understand the exit options available in today’s market? Here’s an overview of seven common exit strategies and the pros and cons of each:
Advance planning can make or break a business transition. Think about how you might want to exit your business someday, then talk to an advisor about how to make that happen. An M&A advisor can provide an accurate business valuation, show you how to increase that value, and help you shape a strategy that best fits your overall goals.