Company Business
Feb/080
Company Business
 |
 Vtg Ginn Co Medial Writing Book Business Forms ca1909  US $9.99
|
 RL Polk Cos Gazetteer and Business Directory 1912 US $999.00
|
 business by houghton mifflin company US $80.00
|
 CO GRAND JUNCTION VIEW OF BUSINESS DISTRICT LAKE US $5.50
|
 CO TELLURIDE NICE 1950s VIEW OF BUSINESS DISTRICT US $5.50
|
 Lot of 2 Mens Hats Advertising Local Business Tire Co US $.99
|
 NY Co Black Business Shirt and Mossimo Jacket Sz S US $.99
|
 1944 Texaco Co Ad Business man Rides White SWAN US $9.99
|
 Womens New York Co Pants Gray 6 business pant US $4.99
|
 Vintage Business Xmas Card Lot Cessna AircraftCan Co US $.99
|
 100 business cards From various people and companies US $.99
|
 Pan Amer zinc business card Joplin Mining Co 1901 MO US $19.00
|
 LAFAYETTE NJ BUSINESS SECTION ST SCENE 1910 SUSSEX CO US $7.99
|
 E Lathbury Co Business Card 1876 Phila Centennial US $19.99
|
 Professional CUSTOM DESIGNED Company Business Logo OOAK US $22.99
|
 Tiffany Co Silver Business Card holder US $40.00
|
 1951 Moore Business forms Co Ad POLICEMANBULLETSGUN US $9.99
|
 1926 National City Co Ad WHEN SHIPS COME IN Business US $9.99
|
 1954 Dress Parade Polishing Company Ad Business Owner US $9.99
|
 Rafaella NYCo Business button down womans shirt LOT US $5.99
|
 NYCo QUIZZ Business button down womans shirt LOT S US $.99
|
 Trucking Company OTR Start Up Business Plan NEW US $19.97
|
 Embroidery Company Service Start Up Business Plan NEW US $19.97
|
 Business For Sale Get In The Wind Aviation Clothing Co US $4,400.00
|
 business card Hardy Hardys Salt Co St Louis Minneapolis US $.95
|
 Business Name Card Book Holders For Home Office Company US $5.99
|
 1928 Business Directory Coffee Co Tennessee TN US $10.99
|
 Authentic Tiffany Co Sterling Business Card Holder US $10.50
|
 1957 Pure Oil Company Our Own Business Booklet Letter US $7.99
|
 LASER Red Heart DEPUTY Company Business Italian Charm US $.99
|
 BUERGER MALTING CO MAYVILLE WIS 1890s BUSINESS CARD US $9.99
|
 Business Etiquette Make a Good Impression Gain Tthe Co US $1.00
|
 Bombay Co Jeeves The Butler Business Card Holder NEW US $.99
|
 Trate Co Business Card Phila Centennial 1876 US $19.99
|
 The Teaching Company Business Economics 1 2 3 DVD US $75.00
|
 Company Business DVD 2002 US $4.48
|
 Home Business Fast Income with w Co op Mailing Service US $8.85
|
 Company Business VHS 1992 Gene Hackman US $2.50
|
 Denver CO Vintage Postcard Air View Business District US $.99
|
 Arizona Jean Co Sz L shirt Business casual low price US $.99
|
 Bugle Boy Company Business Casual Red SS Large Cotton US $.99
|
 Eldridges Business Speller American Book Company 1913 US $3.99
|
 OLD INK BLOTTER INTER STATE BUSINESS MENS ACCIDENT CO US $.99
|
 ANTIQUE SCHMIDT BREWING CO BUSINESS CARD US $.99
|
 Branson Co Infants Hats 1880 Business Adv Trade Card PA US $9.99
|
 Own A Digital VOIP Telephone Company phone Business US $150.00
|
 TRUCKING TRANSPORTATION COBUSINESS PLAN SBA funding US $39.99
|
 Aerial View Business District Denver CO Linen Postcard US $7.99
|
 1923 Business Direct Sevier Co Arkansas US $10.99
|
 1928 Business Directory Sevier Co Utah UT US $9.99
|
My neighbor asked me, "Why would anyone sell a successful company?". He could not understand why anyone would leave a business that was doing well. Of course successful companies get sold all the time.
So why do these business owners sell? The short answer is that most closely held businesses sell for human reasons, such as burn out, retirement, illness, partnership disputes, family issues or other personal reasons. Usually the business is fine but the human being running the business needs a change. To understand this better it is key to understand the other options for exiting a business.
Close the Business/Liquidation
Closing a business that is profitable never makes sense. Even if the assets are liquidated the price is likely to be pennies on the dollar versus selling the business as a going concern with employees, customers and a reputation that is intact. Not only does the business owner get the lowest value but the employees, vendors and customers are hurt by this type of exit.
Accident, Illness or Death
No one wants to exit their business this way, but many do. The loss of an owner not only creates tremendous issues for the family but also creates a leadership void in the business. Even the most competent management can struggle when a key business leader is lost to a serious accident, illness or death. No one plans for this type of exit but many end up exiting the business this way because they failed to create an alternate plan.
Succession
Succession by a family member or key employee has its benefits. They know the business, its product or service, employees, customers and vendors. Succession can be operationally successful for the exiting owner if they make sure the successor is carefully selected, qualified and groomed for the position. The owner must be careful not to make an emotional choice of a relative or favorite employee but instead choose the successor with the right skills to lead the company into the future. You are not seeking an "Employee" mentality but an "Owner" mentality. If that rare person can be found in the business who can make the transition to Owner, they often do not have the cash needed to purchase the business. They are also likely to want to pay less for the business as familiarity will blind them to many of the value drivers of the company. So although succession can be operationally successful it is rarely a financial success for the outgoing owner.
Sell
Closing or liquidating the business minimizes the value to the owner. Accident, illness or death forces the issue on the owner. Succession provided a very limited pool of options with limited financial reward.
Selling on the other hand allows the business owner to decide their ideal timing, maximize the value of the business they worked so hard to build, coordinate the use of the sale proceeds for financial planning and align their personal goals with the sale of a business. Selling the business allows the business owner to create a wealth event and often significant on-going passive income without having to run their business.
Whatever they are, human reasons are always pushing and pulling on a business owner. Burn out, stress, divorce, illness, partner disputes and limited growth capital are some of the human reasons that push owners out of the business. Retirement, enjoying life, relocating, a new business opportunity and passive income are some of the reasons that pull a business owner out. Whatever the motivation, the fundamental reason a business owner chooses a sale as their ideal exit plan is control. The business owner chooses to understand the value of their business and to proactively pursue the right buyer and the right price. By selling a business you choose to exit your business by choice, not by force.
The professional team at Sunbelt Midwest can help you confidentially sell or buy a business in Minneapolis, Milwaukee, Chicago, and surrounding areas. For more information check out our site at http://www.sunbeltmidwest.com.
About the Author:
The professional team at Sunbelt Midwest can help you confidentially sell or buy a business in Minneapolis, Milwaukee, Chicago, and surrounding areas. For more information check out our site at http://www.sunbeltmidwest.com
Article Source: ArticlesBase.com - Is Selling Your Business the Best "Exit Plan"?
No comments yet.
Leave a comment
No trackbacks yet.