Have recent events in your industry and personal life led you to ponder the possibility of selling your business in New York?
While you might be seriously considering stepping away from the captain’s wheel, know that the process is a lengthy and complicated one (which often involves preparatory steps like conducting a business valuation in New York), and once it is complete, you can’t undo it.
By asking yourself the following questions, or consulting a business broker in New York like A. Neumann & Associates, you can be sure that you are undertaking the biggest event in your business career for all the right reasons…
1) Why am I doing this in the first place?
Are you trying to execute an exit that will give you the big payday that many entrepreneurs dream about when they sit down to begin their startup? Or are you looking to get out of an industry that you were once passionate about, but now view as just another job? Whatever your reason, selling a business in New York is not a decision you should take lightly. You need to have your crystal clear “why” ready when prospects ask you why you wish to abandon the ship that you built with your own hands. If you don’t, your hesitation and awkwardness will set off alarm bells in their head that you might be fleeing a boat that is sinking.
2) What is the end goal in taking this course of action?
When you set out to sell a business in New York, you need to know what this life-altering course of action will achieve for you personally. Do you want to do it for the life-changing payout that will allow you to live life with complete freedom, to go to bed at night with the knowledge that you only have to work the next day if you wish to do so?Do you want to pivot into a new niche that you learned about recently, but you need the day to day responsibilities of your current business taken out of your hands first? Get clear on what your end game is before putting your baby on the auction block.
3) Be honest: what is the unfiltered truth about how your business is performing?
Don’t try to “ballpark” your sales price based on anecdotal information, or set it solely based on your financial needs post-sale. When it comes to setting a price that accurately reflects your business’ value on the open market, you need to get brutally honest about the current state of your business. By getting a proper business valuation in New York done by a certified professional, you’ll be able give suitors a number that won’t get you laughed out of their offices upon hearing it.
4) What is my next ambition in life/business after I successfully execute this sale?
When it comes to selling a business in NY, it’s easy to get wrapped up in the minutia of the sale itself. When the final papers are signed though, many sellers are beset by an existential crisis of their own making. It is vitally important to know what you are going to do with your life once the routine and rhythm of running a company day to day is suddenly no longer there. Are you going to travel to Asia like you always dreamed about during those 14 hour days? Are you going to get more intimately involved in the lives of your kids, whose future prospects motivated you to get through the tough times when your venture was teetering on the edge of the abyss? Figure out what your life’s mission will be prior to the sale being completed, so you will have the clarity of knowing your life’s purpose. This will allow you to succeed once you finally have the time to act upon it once you are free of the distraction of having to generate income 8+ hours a day.
5) Should I really be doing this right now?
Sometimes the decision to sell a business in New York is one that is driven by emotion. Maybe you have been going through a rough patch mentally, but the long-term prognosis for your brand is unquestionably positive. Perhaps a recent dive in activity in the M&A sector has you convinced that you need to get out before you are stuck with a company that you won’t be able to sell for two, five, maybe even ten years. Whatever is driving your sudden desire to sell, make sure your motivations make logical sense when exposed to the facts. If they don’t, chances are you are just afraid of an outcome that won’t come true if you stay the course and keep making solid decisions.