Exiting your business is not unlike having a pilot jump out of an aircraft mid-flight. To say the least, it’s going to give everyone involved a bit of anxiety. However, if you as captain of your business put in a few longer days in the final stretch to ensure that your crew, passengers, and incoming pilots are prepared for your leap, turbulence will be minimized.
By Max Beairsto and Mike Jaczko
The Mayans predicted the World would end in 2012. Doesn’t that feel like it was just yesterday? If you wanted to eject out of your business today with minimal anxiety and maximum return, you would have had to start your calendar back when the Mayan one stopped. The point is, the years fly by quickly so don’t be caught unprepared.
But why, you ask would it possibly take 4 to 6 years to sell a business? Sure, you could put it on the market today and have a line-up of potential buyers and your business could sell in 3 to 6 months. When monetary outputs exceed inputs during retirement and millions are at stake, an effective strategic plan is necessary. And akin to a business plan, it takes a bit of time to plot, and execute for it to properly come to fruition.
You need to pay attention to the major aspects in your plan and how to tailor your personalized work back schedule. Additionally, you must go through the due diligence process, and understand who should be included on your team when you embark on the process. Learn to recognize the potential deal killers, and how to avoid a catastrophic crash of your future transaction. Most importantly however, find out how to maximize your return in preparation for your jump.
Mike Jaczko and Max Beairsto will be presenting at Pharmacy U. Learn more about their sessions here.
Mike Jaczko CIM®, a pharmacist by background, is a portfolio manager, partner and member of K. J. Harrison & Partners Inc., a Toronto-based private investment management firm servicing families across Canada.
Max Beairsto, B.Sc., MBA, CVA is a certified valuation analyst and business intermediary with Enterprise Valuators, an Edmonton based valuation and business sales advisory firm.