Ask An Expert
How far out do I need to plan to
sell my business?
Answered By
Michael R. Acosta, CFP®, ChFC®, CSLP®
Owner and Financial Planner at Genesis Wealth Planning, LLC
Question:
How far out do I need to plan to sell my business?
Answer
For business owners who are interested in selling their business, they should really start to think about their exit strategy no later than 5 years out. The longer the runway, the better off the business owner will be in the event of untimely events taking place, i.e., global pandemic or physical health, causing the original exit strategy to be derailed.
Owners have three main options for selling their business:
- Sell to an insider
- Sell to an outsider
- Taking to their grave with them.
Having enough prep time to increase the value of the business and also put repeatable processes in place is key for maximizing their sale price, along with other variables.
