Many small business owners are individuals who have started or acquired a “lifestyle” business—a business that provides the owner with a job and enables the owner to maintain their desired lifestyle. Most of these business owners have considered or will consider an exit strategy from their enterprise. Consideration of an exit strategy may be prompted by many factors such as retirement, a desire to achieve liquidity to pursue other business ventures, owner burn-out, illness, etc. In addition, exit planning may be part of an investor’s overall strategy of acquiring, growing and increasing the value of the business, and exiting the business through a merger or acquisition as a means of creating transgenerational wealth. Throughout the process of buying, owning, and selling a business, the owner must rely on the experience and advice provided by professionals such as legal counsel, accountants, financial advisors, management advisors, etc.
However, when contemplating an exit strategy many business owners attempt to guide themselves through the process without professional business brokerage or business appraisal services. This approach is filled with many pitfalls and may serve to actually destroy value in the process of exiting the business. The following top ten reasons have been compiled in order to give business owners an insight into the benefits of having a professional business broker and business appraiser involved in the process of selling their business.