Planning for the sale of your business is a significant undertaking that requires careful planning to maximize its value and ensure a smooth transition. I have guided you through the paths in Beginning with the End in Mind, Planning Forward, and now, we discuss it time for the 9 months to The End.

At this stage in the process, you should be having active conversations with both your personal financial advisor and internal tax accountant. Be sure the financials of the business are up to date, as well as tax records being current and precise.

Obtaining a real estate appraisal in addition to assessing the value of any manufacturing equipment or inventory should be done at this time.

Examples of things to have in place in this time frame:

✅     Updated Real Estate Proposal

✅     Equipment Appraisal

✅     Updated Financial Reports

✅     Open Conversations with Personal Financial Advisors

Depending on the size of your business, you may be working on selling your business through a variety of sources, such as business brokers or investment bankers. Be prepared to have conversations with your potential buyers regarding your business, its performance, and other possible opportunities. Ideally, you may receive multiple LOIs (“Letters of Intent”) to review the offers that buyers are presenting. These offers will include values, deal structures, financing arrangements, clauses, and other details on the deal. Once you select to proceed with an LOI, you are typically bound by the agreement to proceed into a due diligence period with that buyer.

In Due diligence, the buyer will be asking for greater detailed information to review to confirm presented information in the offering. They may also ask to speak with key members of your team to confirm that everyone is onboard to help in a successful transition. Due diligence may take anywhere from 30-120 days to complete. Assuming nothing changes the structure of the deal, closing will be scheduled and paperwork with be executed.

And then comes the wire…….