Among the growing number of business owners looking to sell their business, JR and Sue Ellen Pawlenty are in the market to sell their darling Pawlenty Energy. This month, Tilting the Scales highlights a variety of issues is its first installment of a series discussing the potential pitfalls that closely-held business owners should be wary of when selling their business.
Top 6 Potential Pitfalls
- Personal Issues & Exit Plan – Exit plan, succession and transition, will you get enough? What is your answer to the question, “Why are you selling your business?”
- Business Plan – Do you have one? What makes your business special and worth the premium? Why would someone buy your business?
- Accurate Financials and Legal/Regulatory Affairs Current – What do your financials disclose about the quality and sustainability of your earnings?
- Value & Timing – What’s your business really worth? When is the right time to sell? What can you realistically expect to be offered?
- Deal Points – What are your options? What terms are realistic? What terms are critical? Why should you care about reps and warranties? Should you draft your own documents?
- Business Brokers & Other Critical Advisers – What should you be looking for? Can the broker help you avoid selling to the wrong buyer? Your accountant? Your attorney?
Be on the lookout for us to cover these issues in depth with the Pawlenty family over the next several months.