2012 Business Sales, Avoiding Risks and Higher Rewards

The new year has begun and resolutions are flying around as if they are going to be kept as usual.  The economy looks like it is coming back, so it is time to consider how that affects you and your decision regarding your exit strategy.

What I have found is that business owners sell only when two decision paths converge.  The first path is the subjective or personal decision to sell: it is time to sell because personal goals can now be met better by selling the business than by staying active in it.  The second is the business decision; both the market conditions and the companies readiness make it the right time to sell.

The personal motives are many but here are just a few to review to  see if you can relate to any of them

·         A desire to take the chips off the table.  Your tolerance for risk just isn't what it use to be.  The recession affected many business owners and took some of the fun out of being in business.

If the joy for going to work each day is fading.  The fire in the belly is gone and for many has been replaced by the desire to do something else.

You realize that now is the time to sell because you can attain financial security.  There are other activities that you want to explore other than just running the business. 

There is a point at which these risks become overly burdensome, especially when the business itself has some value.  The only way to eliminate the risks inherent to owning a closely held business interest to to sell it for cash.  There are few buyers now that are interested in all cash deals so there is still some risk still on the table.  However a personal guarantee for a good qualified buyer will eliminate any concern for collecting what is owed.