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CEO Advisor® Newsletter
January 2021 
Planning for Success in 2021
If you are considering selling your company,
here are some critically important questions to ask a
?mergers and acquisitions expert.

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 very complex process and most business owners have never been through a sale process before. But business owners have more options than they realize. Lacking a team of professional advisors, including a strong M&A Advisor, corporate/transaction attorney and a CPA/tax advisor could have serious financial and tax consequences for both the business owner and the company so seek professional help from the beginning of the process. It pays to understand the various methods to sell or partially cash out of your business for a successful exit.

An outright sale could be the simplest and best way to exit a business. This makes sense when a business owner’s family members have no interest in taking it over or when the owner does not have the desire or capital to take the company to the next level.
There are several ways to sell your business. Regarding the structure of a sale, a business owner can 1) Sell the company’s Assets outright, or you can 2) Sell the stock in the company (or units if it is a limited-liability company). Stock sales benefit the seller, while Asset sales are more beneficial to the buyer, especially from a liability and tax standpoint.

1. Asset Sale. Asset sales involve transferring the company’s equipment, facilities, customers and customer contracts, as well as, intellectual property, such as trademarks and patents including intangibles like goodwill. Asset sales do not involve liabilities (unless specified by the buyer) and are generally protected against prior law suits facing the business. 

2. Stock Sale. Stock sales involve buying the company itself along with the exposure to all of its legal issues and potential problems, as well as, the liabilities of the company. This is why most sales of small or mid-size, closely-held businesses are structured as Asset sales.

3. Partial or Full Sale to a Private Equity Firm. Companies with $10M or more in Revenue and $1.5M or more in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) can explore selling all or a large portion of their business to a professional Private Equity firm. This method comes with stipulations but has many advantages and potential upside. It also enables business owners to take a significant amount of cash upfront and still work as the CEO until the business is sold 100%. There are thousands of Private Equity firms in the United States, and CEO Advisor, Inc. has many relationships with PE firms as potential buyers of your business.

4. Management Buy Out. Selling the business to its management team is also a popular option for the right company. An owner might use this method when the company has a trusted, entrepreneurial management team that wants to carry on the business and this represents the best and most flexible process for the business owner. The primary advantage to this method is that the business owner doesn’t have to spend time trying to seeking out a buyer. The trade-off for a streamlined sale (assuming family issues don’t complicate the process) is that the purchase price may be lower than what an outside strategic buyer would pay.

5. ESOP. Another option is to sell the company to its employees through an employee stock-ownership plan (ESOP). Setting up these plans can be a complex undertaking, but they have their advantages. With an ESOP, the owner may want to remain with the company while slowly transitioning the business over time. It’s a way to reward employees with a long-term incentive for loyalty and hard work.

With this method, the company sets up an independent trust (the ESOP) that buys the owner’s stock at a price set by an independent valuation firm. The trust holds the stock for the employees for as long as they work for the company. When an employee leaves or retires, he/or she can sell the stock back to the company at fair market value. This can be a challenge as some business owners don’t like having a third party determine the value of their business as it may mean accepting a lower price than they could receive on the open market. Also, the company has to grow or have cash on hand to buy back employee shares when workers leave. This can divert cash from other business uses and can be a real cash drain if several employees leave the company in close proximity.

6. Recapitalization. Owners who want to sell their stake gradually, or who want to take some cash out of the business without giving up control, can recapitalize the business, or change its financial structure using instruments such as stock, preferred stock or debt. Suppose there is an outside buyer who is interested in acquiring the business, but doesn’t want to buy it outright upfront. The company could issue Preferred Stock and sell it to the potential buyer on a predetermined schedule. This gives the owner cash upfront, while the buyer has a chance to learn the company’s operations and line up financing before taking it over completely.

7. Debt Buy Out. If there is no readily available buyer and the business has healthy cash flow, the company might take on debt to buy out all or a portion of the owner’s stake. This is similar to a Management Buy Out, and must be evaluated carefully between you and your advisors.

There are many options for business owners who want to sell or cash out. The best method depends on the desire and health of the business and the owner. Understanding your options and getting the right advice from a team of experienced business professionals, such as an M&A Advisor, corporate/transaction attorney and a CPA/financial advisor will make it far easier to pursue the method that’s best for you.

Selling your business is a very complex process and most business owners have never been through a sale process before. But business owners have more options than they realize. Lacking a team of professional advisors, including a strong M&A Advisor, corporate/transaction attorney and a CPA/tax advisor could have serious financial and tax consequences for both the business owner and the company so seek professional help from the beginning of the process. It pays to understand the various methods to sell or partially cash out of your business for a successful exit.

An outright sale could be the simplest and best way to exit a business. This makes sense when a business owner’s family members have no interest in taking it over or when the owner does not have the desire or capital to take the company to the next level.
There are several ways to sell your business. Regarding the structure of a sale, a business owner can 1) Sell the company’s Assets outright, or you can 2) Sell the stock in the company (or units if it is a limited-liability company). Stock sales benefit the seller, while Asset sales are more beneficial to the buyer, especially from a liability and tax standpoint.

1. Asset Sale. Asset sales involve transferring the company’s equipment, facilities, customers and customer contracts, as well as, intellectual property, such as trademarks and patents including intangibles like goodwill. Asset sales do not involve liabilities (unless specified by the buyer) and are generally protected against prior law suits facing the business. 

2. Stock Sale. Stock sales involve buying the company itself along with the exposure to all of its legal issues and potential problems, as well as, the liabilities of the company. This is why most sales of small or mid-size, closely-held businesses are structured as Asset sales.

3. Partial or Full Sale to a Private Equity Firm. Companies with $10M or more in Revenue and $1.5M or more in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) can explore selling all or a large portion of their business to a professional Private Equity firm. This method comes with stipulations but has many advantages and potential upside. It also enables business owners to take a significant amount of cash upfront and still work as the CEO until the business is sold 100%. There are thousands of Private Equity firms in the United States, and CEO Advisor, Inc. has many relationships with PE firms as potential buyers of your business.

4. Management Buy Out. Selling the business to its management team is also a popular option for the right company. An owner might use this method when the company has a trusted, entrepreneurial management team that wants to carry on the business and this represents the best and most flexible process for the business owner. The primary advantage to this method is that the business owner doesn’t have to spend time trying to seeking out a buyer. The trade-off for a streamlined sale (assuming family issues don’t complicate the process) is that the purchase price may be lower than what an outside strategic buyer would pay.

5. ESOP. Another option is to sell the company to its employees through an employee stock-ownership plan (ESOP). Setting up these plans can be a complex undertaking, but they have their advantages. With an ESOP, the owner may want to remain with the company while slowly transitioning the business over time. It’s a way to reward employees with a long-term incentive for loyalty and hard work.

With this method, the company sets up an independent trust (the ESOP) that buys the owner’s stock at a price set by an independent valuation firm. The trust holds the stock for the employees for as long as they work for the company. When an employee leaves or retires, he/or she can sell the stock back to the company at fair market value. This can be a challenge as some business owners don’t like having a third party determine the value of their business as it may mean accepting a lower price than they could receive on the open market. Also, the company has to grow or have cash on hand to buy back employee shares when workers leave. This can divert cash from other business uses and can be a real cash drain if several employees leave the company in close proximity.

6. Recapitalization. Owners who want to sell their stake gradually, or who want to take some cash out of the business without giving up control, can recapitalize the business, or change its financial structure using instruments such as stock, preferred stock or debt. Suppose there is an outside buyer who is interested in acquiring the business, but doesn’t want to buy it outright upfront. The company could issue Preferred Stock and sell it to the potential buyer on a predetermined schedule. This gives the owner cash upfront, while the buyer has a chance to learn the company’s operations and line up financing before taking it over completely.

7. Debt Buy Out. If there is no readily available buyer and the business has healthy cash flow, the company might take on debt to buy out all or a portion of the owner’s stake. This is similar to a Management Buy Out, and must be evaluated carefully between you and your advisors.

There are many options for business owners who want to sell or cash out. The best method depends on the desire and health of the business and the owner. Understanding your options and getting the right advice from a team of experienced business professionals, such as an M&A Advisor, corporate/transaction attorney and a CPA/financial advisor will make it far easier to pursue the method that’s best for you.



CEO Advisor, Inc. has expertise in helping CEOs, presidents and business owners focus on priorities to grow their businesses to the next level and add value toward a successful exit.

 

We are hands-on business, funding and mergers and acquisitions (M&A) advisors that roll up our sleeves and perform desired work with the expertise you need.  First, we ask CEOs critical questions about planning and managing their businesses such as: 

 

Does your company have a Strategic Plan and Forecast? 

 

Does your company have a defined Sales Strategy to maximize sales? 

 

A Marketing Plan and Budget to optimize leads and fuel sales? 

 

A clear path to increased Net Profits? 

 

An Exit Strategy that enables you to maximize the sale of your company at the right time for you at the optimal price?

 

Every business needs to plan. Unfortunately, there is a myth that associates business planning with start-ups. As a CEO or owner of a small or mid-size business, can you afford not to plan? Do you prioritize, focus and manage your time, staff and growth proactively? If your answer to any of the questions above is No, call CEO Advisor, Inc. for a no obligation, no cost initial consultation.

 

When I meet with CEOs of small and mid-size businesses throughout the year, they typically cannot answer the simple question, "What are your goals for this year?"  They throw out short answers such as, "Grow the business", or "Sales", but cannot go beyond this and answer the question distinctly with their four to eight primary goals to drive their businesses forward. This is due to a lack of planning, forecasting and goal setting and is a major deterrent to success and profits. 

 

Below are 7 key areas to achieve success in 2021:


1. Strategy

Strategy involves taking a hard look at your, A) Products and services, B) Core competencies, C) The strengths and weaknesses in your management team, D) Your target markets, E) Sales strategy, F) Direct vs Channel Sales, G) Geographic sales coverage, H) Your customer size and mix, I) Pricing, operations, marketing, J) Acquisition strategy for growth, and K) Exit Strategy. Bring in the needed expertise to ensure your strategy yields success and optimizes sales, profits and the value of your business.

 

2. Planning

Planning doesn't mean just having a meeting with your staff or updating a brief business plan and going back to your daily routine.  Business planning is a critical aspect of your business that enables you to rethink, adjust, plan, research, strategize, prioritize, focus and allocate resources to your largest opportunities, while minimizing wasted time and resources in order to excel in the new year.

Planning takes discipline, expertise, the ability to strategize and mobilize around a focused effort in order to accomplish your goals.  Execution is the follow-on implementation of your 2021 Plan in a well thought out, concentrated effort.  If you are not executing on your Plan, you are wasting time and money, missing opportunities, burning valuable resources and causing irreparable harm to your company, many times on a permanent basis.

 

3. Proactively Guide Your Growth

Your business will grow or not depending on many factors, including overall economic trends, size of the industry, growth of the industry, specific market needs, your products/services, sales management effectiveness, marketing, proper management of labor, reporting, hard work and other elements. Businesses that plan do it to guide and accelerate their growth to move proactively towards defined objectives, increase sales, profits and higher value when deciding to sell rather than just reacting to business events, which is very risky and costly.

 

4. Forecasting

Creating a detailed monthly Financial Forecast of Sales, Cost of Goods Sold (COGS or costs directly related to providing your products and services), Gross Profit (Sales minus COGS), Gross Profit Margin (Gross Profit divided by Sales), Expenses (Overhead), Net Profit and Net Profit Margin (Net Profit divided by Sales) is paramount to effectively running your business.

A Financial Forecast enables you to compare your actual results to your Forecast, proactively make needed adjustments to your business, eliminate wasted time, money and resources while increasing Gross Profit Margins and maximizing your Net Profits. Without a monthly Forecast, you are flying blind throughout the year with no metrics or financial goals.  This, again, will have you leaving a lot of money on the table that will never be recovered. 

 

Forecasting is a straight forward process and a key part of planning for the new year that can be one of the biggest drivers of success and profits. Your Forecast will drive your sales team, sales activity and increase productivity substantially. Seek help from a seasoned business advisor if you do not have a detailed monthly 2021 Forecast.

 

5. Goal Setting

Goal setting should entail all aspects of your business including:

A) Company goals, B) Management goals, C) Department goals, D) Financial goals, E) Sales team goals and individual sale team member goals, F) Sales per Employee goals, G) Gross Profit and Gross Profit Margin goals, H) Net Profit and Net Profit Margin goals, I) Optimizing Financial Ratios, J) Key Performance Metrics, K) Marketing goals and other measureable goals to grow your business to the next level.

Without setting measurable goals, you and your employees may spend the majority of 2021 going day to day in a constant cycle of reactive tasks instead of proactively focusing on and accomplishing your primary goals, executing on your Plan, and maximizing Sales and Net Profits.


6. Manage Priorities and Assign Responsibilities

Goal setting also involves focusing your time where it will generate the most Sales and Net Profits. Manage the company by prioritizing your most important goals according to your short-term and long-term objectives and Plan. A Plan gives your company efficiency, accountability and develops organizational responsibilities. Clear accountability and responsibilities drive businesses forward, increase Sales and Profits, and build value for an optimal exit.

 

7. Track Progress

With a written Plan, you can track your progress towards your defined goals and measure results. Without a Plan, how can you tell whether or not you are moving in the right direction or measuring success? In addition to your Financials, create a Management dashboard to consolidate your reporting of Key Performance Indicators (KPIs) and Metrics in order to make information easily accessible and to optimize your decision-making and success.

 

CEO Advisor, Inc. provides expertise and experience to quickly and effectively assist you in planning, forecasting and goal setting for 2021 to greatly increase your success.  We address your specific needs with hands-on work, action, expertise and seasoned advice. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. by email at MHartsell@CEOAdvisor.com, by phone at (949) 629-2520, by mobile phone at (714) 697-3370 or visit www.CEOAdvisor.com.


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


"Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion."

 

Jack Welch

Businessman, Author



"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)