Let’s start with how to prep your financials for the sale of your business.
Start by getting familiar with your most important financial statements. You need to know and understand your income statement, balance sheet, and your cash flow statement in and out. All of these statements provide insight into how well your business is functioning day-to-day. The financial health of your business is likely already top of mind, but you must ensure you are creating accurate and detailed financial statements in order to understand exactly how well your company is doing.
It’s not a bad thing to ask for help. Hiring an outsourced team to help your current accounting team produce these financial statements can be extremely beneficial. Your outsourced partner does not have to be a replacement for your internal team. At TGG, we enjoy partnering with internal teams to support them through the process of implementing processes and procedures that deliver results.
With our clients, we implement the TGG Way™ to provide excellent financial reporting. This method is modeled from large corporations accounting processes to guide business decisions and give insight and decision-making certainty to plan for the future.
Why should you begin planning for exit?
- First of all, your family will benefit from an exit plan. Exit strategies ensure your spouse and dependents are free from unnecessary decision-making and tax burdens that come with owning a company. Start to handle these things before they need to.
- Next, planning a strategic exit will help you retire comfortably. You likely want to maximize the value of the wealth of your business beyond your annual salary, right? It’s important to consider your own financial goals before you decide to sell, to ensure that selling your business is in line with your personal financial goals.
- As you continue to plan for your business’ exit, be sure to plan for the transition of your company. Your Board of Directors and employees will likely work hard to help you achieve your exit goals, which helps assist a smooth transition when the exit comes. When you plan ahead thoughtfully, you can create certainty and stability during the transition.
- Lastly, ensure you are maximizing your value and growth potential. Implement tangible steps to ensure your financials are sound, which will improve your outcomes.