To Keep or Sell Your Business: A Question Many Business Owners Are Now Asking

Concern over the many facets of business ownership can cause an owner to reconsider where they stand. Major life events, including retirement, death, disability or other unforeseen circumstances can provoke the realization: it is time to make a choice – are you going to keep or sell your business? This is a topic to which most, if not all business owners can relate when exit planning.

The usual kneejerk reaction is to sell the business. However, the question that comes next is “is it the right decision?” Will a seller get more from selling the business than keeping it? The issue lies in “getting more” does not always automatically equate to financial gain – and the owner may be surrendering future opportunity and legacy as a successful businessperson.

If an owner decides to sell their business, it’s essential to plan the best course of action and consider how this decision will affect clients, employees and other stakeholders. A strategic business succession plan can take several years – it’s best to start planning early.

These questions are essential to consider when making the challenging decision – are you going to keep or sell your business?

Keep the Business

• Who will manage the business?
• Who should have majority control?
• What is the business worth?
• Can I really retire with financial security?
• At death, what are the cash needs to pay taxes, satisfy creditors and retain customers?

Sell the Business

• Who are the potential buyers?
• How much will I sell it for, and what price are the potential buyers willing to pay?
• What is the true value of the business?
• Who should be on my team when I sell?
• Is it the right time to sell?
• Are the market conditions right to sell?
• What other conditions may have to be met?

If you are considering exiting your business then you are not on your own. The MGI Australian Family and Private Business Survey revealed that:

• 64 per cent of all business owners would seriously consider selling if approached
• 75 per cent of non-family firms plan to sell now or later

To consider your readiness to exit your business, take our free online survey: https://ascendpartners.com.au/#syb

To your successful succession!