203 - 5 Considerations For A Buyers Plan

Business Legal Lifecycle Podcast

You’ve worked hard to build a business and now you’re ready to sell. But the potential buyer wants you to stay on. What should you do? Today on the show we’re talking about five things you should consider in any buyer plan. What do you want? One of the reasons a potential buyer would want you to stay on is to ensure that the business hits certain revenue targets. That can be very stressful to achieve. It may mean that you will be able to ask a much higher price for the business. But is it worth the stress. Only you can decide. Do you need the extra cash? As mentioned above your staying on to ensure high revenue means you can charge a higher price for the business. But do you need that extra money? How involved will you be? Any buyer plan that included you staying on for a period of time will detail your role. How much time you are expected to invest in the business must be clearly laid out. How much control will you lose? Even if you stay on you are still going to lose a lot of your control of the business. That isn’t going to be easy to deal with. Especially if you don’t agree with some of the decisions of the new owner. Be sure you’ve thought this one through before you sell! What else could you be doing? That extra cash may be nice but it means your time is going to be invested in someone else's business. You could be on a beach somewhere. Make sure this is something you really want to commit too.