Many people focus primarily on the numbers when they think about selling a business. However, at Mercer Advisors, we take the time to understand the human element behind this decision. For example:
- How do you select the right buyer to take over as steward of your company?
- What does this sale mean for you, your family, and your employees?
Once we understand the reasoning behind the sale, we work with you to develop a comprehensive financial plan that aligns with your goals. We bring a dedicated team of advisors to support you along this journey – a trust and estate attorney, a CPA, a tax strategist – all coordinated by one point of contact: Your wealth advisor.
Our experience working with people selling their businesses has given us the tools to not only help people map out the financial steps that need to be taken, but also to provide the support they need to make this transition to focus on enjoying the next chapter of their lives.
Increasing the Multiple is a key to Maximizing Business Value
When done correctly, transitioning a business can boost earnings before interest, taxes, depreciation, and amortization (EBITDA), but enhancing the multiple is equally crucial, leading to greater value for the business owner.
The above scenarios are for illustrative purposes only.
Selling a Business – Beyond the Numbers
Selling a business is a significant milestone that involves both complex financial and emotional considerations. Whether you’re retiring after years of hard work, executing a succession plan, or simply pursuing new opportunities, careful planning and guidance are essential to help ensure a successful transition.
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At Mercer Advisors, we understand the complex nature of selling a business and are here to provide the support and expertise you need to help navigate this process with confidence.
We’ve found that many people considering selling their business don’t think about fundamental questions that should be part of the pre-sale process. Why are you looking to sell in the first place? How will you spend your time after the sale? Even more basic, is selling the business the right thing to do – for me, my family, my employees, my investors? Helping people understand the emotional aspects of their decision allows us to connect with them in a meaningful way even before we start talking about the financial aspect of the sale. Recognizing and addressing the non-financial side of selling can help alleviate stress and anxiety to pave the way for a smoother transition.
Once we have clarity around the “why,” we then begin the work to fully maximize the value of your business. For most business owners, this sale could represent one of the biggest financial windfalls of their lives, so it is crucial to work with someone who can help you capture the full potential of the opportunity at-hand. We start with helping you secure a basic valuation of your business. Then we identify opportunities to help incrementally boost its value in the eyes of prospective buyers and put a plan in place to make the business “ready for sale”. With the sale estimate in place, we can then start assembling the structure of your financial plan, informed by trust and estate attorneys and tax experts, to help maximize what you keep (i.e., after selling expenses, taxes). This time-tested approach helps ensure you live the life you envision after the transaction.
Our team has deep expertise in the many implications surrounding your business transition plan, such as the impacts on your tax strategy, estate plan, and even on your employees. We can help you navigate complex tax situations, including capital gains taxes on the sale proceeds, potential recapture of depreciation deductions, and taxes on assets held within the business. We can also assist you in thinking through strategies to lower your overall tax liability, such as charitable contributions (including setting up Charitable Remainder Trusts or Charitable Lead Annuity Trusts). Finally, our team can help you think through the implications that selling your business might have on your employees and potential plans to support them.
The entire team at Mercer Advisors provides valuable insights and guidance at every stage of the selling process, from initial planning to post-sale wealth management. By involving a wealth advisor early on, you’ll develop a comprehensive financial plan that aligns with your goals and priorities, helping ensure a smooth transition and a secure financial future.
Selling a business is a major life decision that requires careful planning and support for both financial and emotional considerations. At Mercer Advisors, your advisor will be a trusted partner who will help you navigate through the entire business transition process with confidence to help you achieve the outcome that’s right for you.
5 Crucial Important Steps to Sell Your Business
Even if you put your business up for sale, completing the transaction is not guaranteed. While there is no way to create 100% certainty, following these five important steps could help increase your chances of success.
