Preparing To Sell Your Business
Clarify Your Motivation
- Identify primary reasons (e.g., retirement, new ventures, health, de‑risking, partnership changes, burnout).
- Rank your goals (e.g., maximum price, speed, confidentiality, legacy, employee continuity).
Why it matters: Your “why” shapes marketing, buyer selection, and deal structure.
Consider Alternatives To A Full Sale
- Partial recapitalization or minority investment.
- Management buyout or partner buy‑in.
- Hire professional management and hold longer.
- Refinance to unlock liquidity.
Outcome: Confirm that an outright sale—versus an alternative—best serves your objectives.
Define Transaction Objectives
- Price & structure: cash at close vs. seller financing/earnout; acceptable ranges and limits.
- Working capital: target level to be delivered at closing.
- Transition role: duration, responsibilities, compensation.
- Restrictions: non‑compete scope, non‑solicit, consulting terms.
- Confidentiality: who can know, when, and how.
Assess Timing
- Business readiness: stable/growing earnings, clean books, recurring revenue, low customer concentration.
- Market factors: industry outlook, interest rates, buyer activity.
- Personal readiness: energy, availability for transition, life plans.
Note: A 12–36 month runway typically improves outcomes.
Model After‑Tax Proceeds
- Work with your accountant and tax lawyer to estimate net proceeds after taxes, fees, and debt payoff.
- Compare net proceeds to a detailed personal financial plan and retirement budget.
- Run scenarios (base, downside, upside) on price and structure to test lifestyle sustainability.
Build Your Advisory Team
- Business Broker (Trillium): market preparation, buyer screening, negotiation, process management.
- Accountant: quality of earnings, tax optimization, working capital mechanics.
- Financial Planner: post‑sale cash‑flow, investment strategy, risk management.
- Tax Lawyer: deal structure, representations/warranties, compliance.
Retirement & Post‑Sale Readiness
- Work with your accountant and tax lawyer to estimate net proceeds after taxes, fees, and debt payoff.
- Compare net proceeds to a detailed personal financial plan and retirement budget.
- Run scenarios (base, downside, upside) on price and structure to test lifestyle sustainability.
Confirm Terms, Conditions, And Timeline
- Define purpose and plans post‑exit (travel, new venture, mentoring, board roles).
- Plan identity and routine shifts to support a smooth personal transition.
- Proceed to market now, or delay and execute a value‑build plan (with specific operational, financial, and risk‑reduction targets).
If you’d like a structured readiness review and a personalized plan, Trillium can facilitate a goal‑setting session and net‑proceeds analysis tailored to Kingston market conditions.