Selling Criteria for Your Business [Critical Read]
Criteria as we define it in the business selling process is your motivation to sell your business.
Stating your criteria first and foremost is very important in the process of selling a business.
We often revisit criteria throughout the process and buyers will ask about your motivations/criteria for selling.
If your criteria changes, let us know and let’s discuss your thoughts. Do this before we receive an offer; don’t wait until you get an offer to change your criteria.
Criteria will help make your decision on accepting an offer.
If you calculate that you will make more for several years more than an offer, then you are not truly evaluating your criteria. You will always be able to add up future year’s income to be more than an offer.
Examples of criteria:
- Retirement; transition towards retirement
- Cutting back workload
- Getting rid of ownership duties
- Gaining more resources for more business
- Taking care of employees – more opportunities
- Taking care of clients
- Wanting to do something else (not related to the current business).
Other Selling Criteria Related Notes:
- The most common reason a business is sold is due to fatigue, boredom, and burnout. The ongoing, daily grind of managing small business stressors can be very tiresome. Beyond the actual stress, many owners simply sell because they are no longer challenged or interested in the business’ operations.
- Business owners should always be looking to exit their investment. Not because the company may be in a bad place but because it is a smart business decision.
- After dedicating many years of time, energy and resources into building a company, CEO’s, partners, principals and founders may find themselves ready for retirement.
- Some determine their criteria as seeking a change or new opportunity.
- The mindset of an owner selling their business should not be obsessing over the last few dollars of valuation but rather focused more on their criteria for selling, and also the quality of people they will be partnering with as a result of the sale.
- Thousands of businesses each year close the doors of their business when they could have been sold. Don’t be one of these people. Realize the value of your business.
- Ultimately every decision to sell a business is based on the business owner’s criteria. Hopefully by reviewing our list of common reasons for selling a business and criteria, you can see that there are many reasons for selling a business.
Examples of Criteria Statements
- It is important to the owner of ________ , that there is a successful evolution of the practice to a new generation of ownership.
The demand for services and work from continues to be strong. Expanding resources, internally, capacity wise and geographically will allow for the capture of new business as well as continue the legacy of the award- winning reputation and the practice for younger employees and new owners. The owner would like to expand staff and resources in order to remain competitive in the design community and expand project opportunities.
Strategically, an acquisition will accomplish these objectives. - This succession will facilitate the retention of our dedicated and talented staff and will allow the new owners to expand the staff and resources in order to continue the award-winning reputation and legacy of this_____- year-old practice. It is important to the owners of_________ , that there is a successful evolution of the practice as the founding partner looks toward retirement over the next few years. The seller will commit to working in client transition and business development, post-closing for a transitionary period of time to be determined and mutually agreed to between buyer and seller.
- It is important to the owners of_______, that there is a successful evolution of the practice as the primary partner looks toward retirement over the next few years. This succession will allow the ongoing involvement of younger staff members and new owners to expand staff and resources in order to continue the award-winning reputation and legacy of the practice. It is the hopes of the current owner to look for an acquiring firm that will continue the growth and stability of the current successful firm, its’ partners and staff. The ideal acquiring partner will offer, through fit, focus and culture, a synergistic situation where one plus one equals three or more.
- The succession of the practice to a new generation of ownership is important to the current owners, working towards retirement. The firm desires and is capable of growing to the next level throughout their working markets under ambitious and capable leadership.
- It is important to the owners of _______ , that there is a successful evolution of the practice to a new generation of ownership.
The demand for services and work from________ is beyond the capacity of the current staff and resources available for client projects. Expanding resources, internally, capacity wise and geographically will allow for the capture of this new business as well as continue the legacy of the award- winning reputation and the practice for younger employees and new owners. The owners would like to expand staff and resources in order to remain competitive in the design community and expand project opportunities. - It is important to the owners of_______ , that there is a successful evolution of the practice as one of the founding partners looks toward retirement over the next few years. This succession will allow the ongoing involvement of younger owners to expand staff, resources and capabilities in order to continue the award-winning reputation and legacy of the practice.