Donnelly LLC
Call for a Free Consultation
Toll Free 866-907-6368 Local 856-324-6147

What exit strategies are important when selling a business?

Hard-working New Jersey business owners who are seeking to move on with their lives for one reason or another should be aware of the importance of comprehensive exit strategies. When pursuing the sale of a business, there are a multitude of factors that will be important. Understanding what must be considered and taking the proper steps is key with business sales. It can be difficult to make that transition from owner to seller and accept that someone else will be making the business decisions going forward. However, once the choice is made to move on, having a comprehensive plan is crucial.

There are several different factors to think about. Taxes can be complex. Discussing how the transaction will affect the finances of the seller must be done from the start. Business owners will undoubtedly have an estate plan, and this must also be addressed. Taxes can be substantial if there is a major profit when selling the business, so mitigating this as much as possible is wise.

Many people who are selling a business are doing so to retire. Moving from being the owner of a business to retirement can be a difficult transition. When selling, it is important for the prospective retiree to have enough of a nest egg to move forward with the plan. Finding a buyer who will maintain the business and its quality is also of paramount importance to many since their names are still associated with it and they do not want to see a lifetime of hard work come undone by picking the wrong buyer.

Selling a business can be an emotional situation. It is like losing a part of one's life that has been there for an extended period. Letting go is tough. The sale should go to an entity who will maintain it and cares about it. This is also part of a plan of attack to selling and moving on. Finally, there is often a "what now?" feeling for those who have sold a business. Whether the seller would like to move on completely and retire or is thinking of something else, having a grasp of certain factors like competing with the former business will come up. This is when legal help is required.

Exit strategies have many different meanings and for a person who is selling a business, that is particularly true. With business sales, a lawyer who has experience with a variety of circumstances can help with all aspects. This is the first call that should be made when considering selling a business.

Source: Forbes, "Four Things To Consider When Planning Your Exit," Jay Offerdahl, Oct. 6, 2017

No Comments

Leave a comment
Comment Information

Mount Laurel Office
Mount Laurel Office
403 Birchfield Drive
Suite 403A
Mount Laurel, NJ 08054

Map & Directions

Linwood Office
Linwood Office
327 Central Avenue
Linwood, NJ 08221

Map & Directions

Cape May Court House Office
Cape May Court House Office
618 Route 9 South
Cape May Court House, NJ 08210

Map & Directions

Gloucester, Cumberland and Salem County Offices
Gloucester, Cumberland and Salem County Offices
57 Euclid St.
Woodbury, NJ 08096

Map & Directions

Back To Top