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San Diego Exit Strategies
Exit Strategies: Why You Need One and What It Should Include
San Diego is a booming market for businesses. Local business figures show that there are more than 77,000 businesses in San Diego County with at least one employee and 242,000+ businesses that are sole proprietorships without any employees of record. Interestingly, 57 percent of these business have just one-to-four employees, with the next two largest segments comprising 50-to-99 employees and 100-to-249 employees respectively. Whether your business is large or small, you may be at a season in ownership when planning your exit strategy has become desirable.
An exit strategy encompasses more than putting up a “for sale” sign and waiting for buyers to tender offers. You need a comprehensive plan to best position your company for maximized profits and transitional success after the sale.
Benefit of an Exit Strategy
Your exit strategy enables a variety of benefits. First and foremost, it enables you to gauge your company’s strengths and the market’s demands to time your selling season to correspond with the perfect time in the business cycle. That means you’ll be able to maximize potential profits from the sale to roll into your next venture or looming retirement. You also won’t find yourself in a position of needing to sell quickly or without thorough preparation.
Include an Experienced Business Broker in Your Strategy
Your exit strategy can include working with a business broker, who acts as a matchmaker to pair up the unique offerings of your business with a buyer who can appreciate its value and take the company into the future. Your broker will also handle all of the details and legalities that occur during the business selling process, enabling a smoother transition and potentially higher sales price. In addition, while you’re an expert in running your business, your broker is an expert at selling it and can anticipate all of the needs that may arise.
Create a Transition Strategy
Finally, ensure you have a transition strategy. While some businesses sell so that buyers can acquire the rights to services or products, many sell to new owners who wish to continue operations largely as they were — or at least until they learn enough to forge a different path. Your transition strategy can keep management personnel in place after the sale so that the company’s wheels continue turning under steady hands. You may find yourself and other C-level personnel asked to stay on in advisory roles for a set period of time, which can lead to generous financial allowances.
You may be able to plan your own exit strategy, but you can also work with professionals who have helped numerous other business owners successfully sell their own companies. The guidance they provide can help you assess angles of your business you may never have considered, such as its outside perception and any deficiencies to address before sale.
Strong employment figures and heightening economic results are aligning to make this a great time to plan your exit strategy and sell your business. Take advantage now to reap financial benefits for your personal and corporate future.
If you want to speak with an experienced business broker about selling your business contact LINK San Diego today at (858) 452-3000 or inquire at email@example.com