b'to succeed. If you are organized and disciplined about collection andprocess. Do you want to sell to a third party? Start connecting with FOGHORN FOCUS control, the information your company generates can tell you where tobrokers or potential buyers now so when you want to sell, you already invest and more, where to look for mistakes and how to correct them,have relationships in place. and where you can and should be spending your time as a leader.3. ASSEMBLE A DEAL TEAM 2. UNDERSTAND YOUR OPTIONS Regardless of what path you choose, youll want and need a good law-There are a lot of ways to transition out of a business. You could re- yer and accountant to help you understand your options. We highly tain ownership and slowly step away from day-to-day operations. Yourrecommend working with a lawyer who has experience in transac-children could take over. You could sell totions. You may really trust your childhood your employees, a competitor, or a thirdbest friend who is now a great real estate party. Or, you could simply close the busi- lawyer, but they probably wont be much ness and sell off the assets. (See chart onIf you have a lease,help in this process. If you choose to work previous page.)make sure you reworkwith a business broker, speak with a couple to make sure you are getting good represen-Regardless of which path is best for you,it to: a) be longtation and that your interests are aligned. thinking through your options before you need to sell will set you, and your business,duration and b) haveInternally, decide if you want to loop any-up for success.body in your company into the sale. Many the ability to transfersellers dont feel comfortable telling employ-There is no one-size-fits-all answer to thiseesaboutapotentialtransaction,under-and this is something each owner must eval- in the event of a sale.standably so. If thats the case for you, figure uate for themselves. Do you want to keep itout who outside of work is going to help you in the family? Great, but start training thepull together information and help you think next generation now, that wont happen overnight. Do you want tothrough your options. Bottom line, this is not something on which you sell to your managers/employees? That can be a great solution, but youwant to go it alone. need to make sure your managers are on board, and have the financial ability to pull off a transaction. There are also different ways to sell to4. FIGURE OUT WHAT YOU WANTemployees, and understanding the tax implications of different struc- Do you want to sell the majority of your business? Do you want to sell tures takes time, so get yourself a good advisor to help you through theeverything, or do you want to retain a minority stake? Do you want an DEAL PROCESSMarketingInitialDecisionSelecting YourConversation to Sell a Broker Company with BuyerTODAY1 2 3 41-3 YEARS 1-6 MONTHS 1-3 MONTHS 1-6 MONTHSLegalDocumentDueCHART COURTESY OF CHENMARKCLOSINGNegotiation Diligence LOI NDADeal Done!8 7 6 54-6 WEEKS 2-3 MONTHS 2-4 WEEKS 1-2 WEEKSFOGHORN 10'