Practice Readiness: Preparation for Sale, Assessment and Action Plan:
If you want to succeed in selling your practice, Practice Readiness – being thoroughly prepared – is absolutely essential. All it takes is one seemingly insignificant or overlooked item to kill a deal. Conversely, when you’ve anticipated every detail and prepared well, the deal goes smoothly and you ultimately increase both business value and the speed of the selling process. It works like magic, and it’s one of the smartest investments a business owner can make to ensure a successful and lucrative sales transaction, regardless of whether it’s a practice or a bakery.
The Hidden Benefits of Early Preparation:
You may be surprised by the multitude of hidden benefits derived from timely preparation for sale. The process of analyzing the value, viability and saleability of your business from the perspective of a potential purchaser or successor will likely change the way you look at it.
For many owners, that analysis is the wake-up call, they need to transition from an owner-centred operation into a more autonomous and saleable enterprise. By following proper advice, not only will you increase the value of your practice, but you’ll probably have more time to spend doing things you haven’t had enough time to enjoy!
By starting early, understanding the factors that create business value, and designing your business to be as Attractive and Business Ready as possible, you can be one of the fortunate few who exits successfully.
You’ll join an exclusive club of practice owners who aren’t prepared to settle for what the economy, the market or fate throws their way. You’ll have taken charge of your business and your future in a way that will allow you to earn more, keep more, and cash out of the practice you’ve built – on your terms.
Thinking of Selling Your Business?
Selling a business really is a big deal. It’s far more complex than most owners realize, which is why roughly 85% of business owners won’t succeed, and even if they are successful, 75% will be unhappy with the result.
How do you beat those dismal odds? The key to success is the right Practice Readiness plan, executed with plenty of time to implement the strategies required to increase the value, selling potential and ultimately the net proceeds you earn. In some cases we have worked with the principle for up to 24 months in advance.
So what are those strategies?
We call them Practice Readiness / Exit Planning. A well-crafted exit plan is your playbook to reap maximum benefit from the hard work and risks you took to build your business. It’s effectively a comprehensive exit business plan, much like the plan you had when you started your business, but this one ensures that you’ll be able to leave it on your terms with as much reward as possible.
The key to success lies in exit planning and business preparation. You can never start too early, and the more prepared you are to exit, the better. Experts say you should begin your exit plan the day you start your business, and that’s absolutely true. If you don’t already have a Practice Readiness / Exit Plan, you’ll want to begin specific preparations at least two or three (and ideally five) years before putting your business up for sale.
You’ll also want to add 6 to 12 months to that time frame, which is typically how long it takes to find the right buyer and get the deal done. I know we can sell a practice in as little as a couple of months, but we are planning for every conceivable scenario here.
When Should You Sell Your Business?
You’ll reap maximum return on the sale of your business when planning, preparation and timing come together. Assuming you’ve left sufficient time for all the financial, tax and strategic preparations involved in enhancing the value, saleability and net proceeds of your business, there are three overarching factors that determine the right time to sell: personal timing, business timing, and market timing.
Next post in this series will address:
• Business Timing
• Personal Timing:
• Market Timing:
• Want Maximum Value for Your Business?
• What is and Why Reverse Due Diligence?
• Do you know the answers to these questions?
• How Will You Ensure Your Success?
• Top 10 Value Enhancement Insights
• Top 10 Preparations for Sale Strategies
• And last of all No BS