How to sell your business and make a successful exit

Every entrepreneur at least once thought about leaving the business. There may be various reasons for this: the desire to invest in another project, fatigue, or lack of resources for development, To find out more about selling your business be sure to visit Nash Advisory.

It is better to plan the exit on advice to get the maximum benefit and not lose money. Having a competent strategy will increase the valuation of the online business and allow you to exit it faster.

What is an exit strategy?

An exit strategy is an entrepreneur’s strategic plan to sell their ownership in a company to investors or another company. An exit strategy allows the business owner to reduce or liquidate his or her stake in the business and, if the business is successful, to make a significant profit. If the business is not successful, an exit strategy (or “exit plan”) allows the venture capitalist to plan for the exit of the investment.

Ideally, the entrepreneur develops an exit strategy in their initial business plan before actually entering the business. The choice of exit plan directly affects future decisions about the company’s development. Common types of exit strategies are:

– initial public offering of shares,

– strategic acquisitions and management buyouts.

Which exit strategy an entrepreneur chooses depends on various factors, such as the degree of control or involvement in the business, whether the parties to the transaction want the management to continue to run the company in the same way, and whether they are willing to change provided they are well paid for leaving the company.

The best way to sell your business: top tips

When to sell your business?

The best time to sell a business can be calculated by the following formula: profit growth compared to marketing return + dynamics of job growth and production volumes. The period when this ratio is in balance or slightly decreases will be the optimal time for selling a business will help with this.

Positioning business finances is the first step you can take when preparing your business for sale.

The financial health of a company is measured by the indicators that appear in the company’s financial statements:

– positive and growing cash flow in the cash flow statement;

– growing profit in the income statement;

– the balance of assets, liabilities, and equity in the balance sheet.

In simple words, financial positioning is an indicator of whether a company is delivering value to its owners. Without it, a business has no reason to exist.

How much do business sell for?

The value of the business is the starting point in negotiations. This is the amount that a conditional buyer is willing to buy 100% of your business. In the process of negotiations, the value of the business may increase or decrease, it may be zero. There is no single correct, reliable, and objective way to estimate how much a business is worth. It is always a matter of negotiation, trade, and data manipulation.

Risk management models

Business participants themselves must determine the level of risk they are willing to take to make a profit, taking into account that success in achieving the goal largely depends on the management methods used. It is important to take into account experience and remember that the process of risk management is not yet complete, and the task of creating a universal methodology cannot be solved in principle, since each company or enterprise is unique in its way, focused on its market niche, the capabilities of its employees, and established connections.

Where to sell a business?

The best way to sell your business is to sell the enterprise to someone interested in it. To make sure you are bringing people what they want, not what you want, conduct a focus group survey with the target audience of the product or service. This can be done on your own and without involving serious funds. Such a mini-study will provide insight into your customer and save a lot of money wasted on further experiments.

Life after the sale of the business

Do not hurry. Give yourself and your life a pause. Sleep it off. Until you feel that it is enough. Try to look at the world around you and your life with different eyes. What suits you in it and what does not?

Don’t be “afraid” of money, if it is appropriate to say so, and don’t try to “attach” it immediately. It does not matter how much you have. Without your participation, they will never burn and depreciate by themselves.

Do not try to start a new business immediately. Your success in the past does not guarantee the same success in the future. You can make big mistakes. But in any case, do not stop. Do not go “into retirement”. Move forward. And at 45 and 65 and 75. And then you will succeed.


Before selling a business, prepare it. Enlist the support of a broker, who can help in buying and selling businesses for profit, if you are not confident in your abilities. Think over an exit plan, and check the current affairs in the business. This is the only way you can sell your business and get the most out of it.

Richard Maxwell

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