For most owners, exiting a business is a once-in-a-lifetime event, done for a variety of reasons. Without planning, results are sub-optimum. Exit planning means preparing a business for sale or transition to outside buyers, management, other owners, or family. Obtaining an appraisal of business value is critical. A thorough valuation helps assure that the value applied or price desired is realistic and adequately supported. A key variable in benchmarking the value of a financially healthy business is the measure of earnings before interest, income taxes depreciation, and amortization. If sale is the exit strategy that is chosen, once a valuation is completed, it is a good idea to involve a business broker or intermediary. They have experience in marketing businesses, screening buyers, and negotiating the best deal.
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