There are many reasons why businesses don’t sell. It may be down to inflated price or bad timing. But it may also be because the business is too dependent on the current owner for its day-to-day management and ongoing success. That’s not a very attractive prospect for any potential new owner!
As weird as it sounds, in order to make your business more saleable, it needs to be able to function successfully without you at the helm.
Although our ISOP succession plan is primarily focused on passing ownership to employees or family members, it can be used as a stepping stone to an eventual outright sale to a third party. How? Well, business development is a key step in the ISOP planning process. At the heart of that business development is building a business that can function well without you.
To read the rest of this blog, which is based on an extract of Andrew Gray’s book Do More of What You Love: The New Approach to Business Succession Planning – go to DMOWYL