Make the right choices when selling your business

How to avoid common mistakes

Follow these 5 tips

1
Surround yourself with a team of experts
2
Include audited financial statements
3
Update your estate plan
4
Avoid taking the first or highest bid
5
Prepare for your post-sale life

Surround yourself with a team of experts

In short

A financial advisor provides you with a long-term relationship and orchestrates your entire team of experts to align with your financial goals.

Tap into the power of expertise

Having a team working alongside you can prove to be a powerful asset in selling your business. A financial advisor serves as the glue among all your partners.

How can UBS help?

We can connect you with investment banking and advanced planning experts from both in and outside of UBS.

Include audited financial statements

Make your strongest case possible

For larger businesses, there is no better, more objective analysis of your business than an audited financial statement, vetted by a certified public accountant (CPA). It can:

  • Send a powerful message of credibility
  • Save your buyer research time
  • Move the process more quickly to getting an offer

How can UBS help?

We can connect you to reliable accounting firms that specialize in audited financial statements.

Protect your estate

In short

Estate plans are critical in helping you avoid unnecessary taxes on your personal wealth from a business sale.

Separate business from personal

Having an estate plan is important because the sale of a business can trigger a taxable event within your personal estate, unless proper planning has helped separate your business and personal income streams beforehand and established trusts for children and future charities.

How can UBS help?

While UBS does not provide tax or legal advice, your UBS Financial Advisor has access to advanced planning resources that can work with outside tax and legal advisors and support trust and estate planning.

Avoid taking the first or highest bid

Act, don't react

There may come a moment where you’re feeling good about getting an early bid. Don’t be tempted unless you’re 100% confident. Accepting the first or highest comes with many pitfalls.

Why shouldn't I take the first bid?

In short

Accepting the highest bid may be tempting, but there's much more to your sale than a hard number, including continuity underlying terms and conditions.

Lack of competitive tension

You may be missing out on a higher offer by not marketing to other buyers and sparking a bidding war.

Unknown valuation

If you haven’t shared a comprehensive evaluation of your financials or looked at comparable sale prices with an investment banker, you don’t know what you don’t know.

Future growth not priced in

The first offer might reflect your business’s value now, but it may not price in its future growth, which could be significant.

What about the highest bid?

In short

A high offer may seem attractive. But is your buyer the right fit and can they ultimately follow through? Having an expert deal team can help you uncover any pitfalls, negotiate terms and help ensure your deal is set up for success.

Buyer's ability to follow through

Make sure the buyer has the necessary funds, experience and track record to finish the deal.

Hidden costs or risks

The highest bid sometimes comes with “baggage” like requests for extensive warranties or terms that expose you to future liabilities. Look deeper with your team.

Cultural fit and legacy

Sometimes the highest bid doesn’t come from someone who shares your culture or vision. Look beyond the raw number.

How can UBS help?

We'll help you understand the growth trajectory of your business and consider if it makes sense to exit or to stick with it.

Prepare for life after the sale

Plan your future

You’ve probably already thought about what life you wanted to live after the sale. But beyond rounds of golf or time on beach, it’s important to have a plan that will bring the most meaning, fulfillment, and a sense of purpose possible to your life And you’ll also want to prepare for solicitations from businesses, family and friends who may want to reconnect.

To better prepare, it helps to understand these key ideas:

  • Remember that a few hours invested now in planning your future can reap big dividends, save work and help you avoid anxiety down the road
  • Ensure you can fund the life you want in the long-term by gathering the right team consisting of a financial advisor, estate attorney, tax attorney, investment expert and more
  • Be prepared to field calls from financial advisors and others soliciting business after your sale is made public
  • Start connecting accounts between the proceeds of the sale and your investments, trusts, and retirement as well as create a tax minimization plan

How can UBS help?

We can assist you in developing a personalized financial plan that addresses your unique circumstances and provides ongoing guidance and support.

Explore the other hallmarks of a successful sale

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