Perhaps you read the first round of misconceptions but are still feeling confused. That’s okay! Selling your business is a big decision and so you should feel confident that you understand the process before entering it. If you believe these things about selling, you may be in need of a reality check.
I can wait until next year (or the year after that) to sell.
You probably shouldn’t wait until next year to sell. If 2020 didn’t teach you that the future is unpredictable, then what will? Right now is a really good time to be selling your RIA because competitor RIAs are growing and increasingly more companies are looking to buy. If your business is already doing well, then imagine how well it could be doing with the help of an even larger firm.
My business is ready to be sold.
While waiting too long to sell can be risky, the harsh reality is that your company might not be ready to sell now. You would wash your car before selling it because people will pay more for the same car if it looks clean. So why try to sell a dirty business? If you can show your business at its best, you can expect higher valuations and more offers. Do you have the data to prove your business is doing well? Have you established a work culture that encourages best efforts from your employees?
Once I decide to sell, my business will be sold fast.
This isn’t a box of Girl Scout cookies. Selling your RIA should not be a fast process (and usually never is). Even after you have found a buyer, negotiating the terms of the deal can take several months. It is unlikely that you will be offered your asking price, at least not at first, and negotiating can continue even after the letter of intent has been signed. Be patient with the process and you can avoid having regrets later on.
So now are you ready to sell? Contact Freestone.