Selling your family business with Chris at Crossroads Advisers

By Chris Goebel, Owner Crossroads Advisers

The people who are interested in buying your family business are taking a risk. If they feel uncomfortable about their ability to operate profitably, the deal that you may be relying on to support you during retirement could fall apart.

You can expect a seller to meticulously examine every detail of your financial records before agreeing to the acquisition. That’s why it is important to present clean, accurate statements that are prepared according to standard accounting principles. Your financials should clearly demonstrate the profitability of your business exclusive of expenses that are not directly related to ongoing operations—such as a company car or boat. That process is called recasting your financial statements.

Firsthand Knowledge
When my family and I sold Lakefront Lines and Hopkins Airport Limousine Service, the clean financials we presented helped to earn the confidence of the buyer and resulted in an offer.

The sharing of financials can be a tedious, time-consuming process that may involve numerous meetings. That’s why it’s important to be represented by an expert business broker or business banker who understands the negotiation and closing process. Your broker or adviser should be certified as an exit planning adviser. Some businesses get one shot at the optimum sale, so it’s essential that the process is handled correctly.

Crossroads Advisers specializes in pre-business transition planning, including succession and exit strategies, and business growth and preparation planning. You can schedule a complimentary one-hour consultation and business valuation with Chris by calling 216-202-4296. You can learn more by visiting CrossroadsAdvisers.com.