Kasper & Associates maintains faith in the American spirit and we believe in the power of positive thinking.  To that end, we’ve presented Success Maxims — a collection of our favorite motivational quotes, essays and leadership advice.  (For a complete collection, e-mail your mailing address to contact@kasperassociates.com.)

SUCCESS MAXIMS

–Part 19–

Business Exit: Tips to Maximize Value

If you have decided to sell your business in the foreseeable future, plan now to get a head start in preparing for the transition.  The process can take longer than you think.  Following are some tips to help you realize the best price and terms.

• If possible, begin preparing to sell your business 1-2 years before the expected listing date.
• Get all major shareholders and your spouse to agree with the plan to sell. Don’t assume your spouse or major shareholders will sign whatever is put in front of them to effect the sale.  Seek professional help on this matter as needed.
• Try to keep an open mind about the potential value and be flexible about the terms of a proposed transaction.
• Explore tax savings strategies with your CPA or other tax advisor.
• Replace family member employees unless they plan to remain with the business after it is sold.
• In order to boost your company’s profitability, reduce or eliminate unnecessary perquisites you receive from the business.
• Replace non-productive employees with productive ones.
• Develop key employee job descriptions/resumes and an organization chart which includes all employees.
• Execute employment contracts for key employees.
• Reduce receivables; clean up your company’s financial reports; update inventory records.
• Settle liabilities and pending litigation.
• Spruce up the facility inside and out.
• Upgrade your company’s technology and fine-tune customer records using up-to-date software.
• Do post-retirement financial planning with your financial advisor.
• Develop a relationship with a professional Merger & Acquisition Specialist 1-2 years in advance of anticipated listing date and request an opinion of current market value of your company.