Trustmark Mergers & Acquisitions

Exit On Your Terms

01.02.24 06:52 PM By MARK HERRMANN

Exit On Your Terms

   As the saying goes, the best preparation for tomorrow is doing your best today. But many business owners may not know what to do TO prepare. Recently UBS Investor Watch looked at business owners who now face headwinds from higher interest rates, inflation and political uncertainly. Among their findings, they found that many fear they’ve missed their best chance to sell. But experts advise that opportunities still exist and the key is finding the right buyer—and that requires preparation. 

   Business owners who recently sold underestimated the time needed to prepare. More than 73% said they spent less than two years preparing for the sale of their business AND 81% of business owners regretted not preparing to sell sooner. UBS’s research also found that many business owners aren’t properly prepared to sell when the time is right. 

   So what does preparation look like? Well, UBS cites these items to consider: 

  • Identify professionals to help finalize the sale (engaging a business broker)
  • Put structures in place to help minimize taxes and shield proceeds
  • Complete a business valuation with a trusted business broker
  • Engage heirs about family wealth (find a trusted financial planner)
  • Put in place an estate plan
  • Have plans for what to do with sales proceeds

   It’s never too early to plan, but it can be too late, especially to maximize net proceeds. Strategic planning with tailored solutions, including a trustworthy business broker and a financial planner, can help throughout the lifecycle of a business. If you’re interested in preparing for the sale of your business or a business valuation, call us today. 

About the survey: UBS surveyed 416 US business owners who are looking to sell their business in the next five years and 123 who have recently sold a business. Each business owner has at least one employee and $1M in annual revenue. Survey conducted from April 12-20, 2023.