Selling your business is about more than a number

1. Retirement planning
   Selling a business can be a crucial step in building a retirement nest egg or in funding expenses for an exciting next chapter in your life.
   
   
2. Legacy and succession planning
   Selling the business to a capable buyer who can continue its operations and maintain its culture and reputation can be important for business owners who want their hard work to endure.
   
   
3. Pursuing new ventures
   Money from your sale may give you a chance to start a new business, invest in different industries or take on new challenges not possible when you were running your business.
   
   
4. Philanthropy and giving back
   While it's possible to give to the people and causes you care about after your sale, performing intentional legacy planning before your sale can amplify your gift and deliver more impact.

1. Financial performance
   Cash flow and growth trends are all critical in making up the value of financial performance. Recurring revenue, sustainable growth, a diverse customer base and limited concentration in a few big customers is typically preferred.
   
   
2. Industry and market conditions
   Market demand, competition, industry growth prospects and economic factors help determine your business's current and future value in the market.
   
   
3. Assets and liabilities
   Property, equipment, inventory, intellectual property and customer relationships determine value after subtracting liabilities such as outstanding debts and legal obligations.
   
   
4. Market comps
   Comparable sales in the market, or "Comps", are good objective benchmarks to help arrive at a fair valuation for your business.
   
   
5. Business structure and legal considerations
   The legal structure of a business, including ownership rights, leases, licenses and any legal constraints, is factored in when pricing the business. Contractual agreements with customers, suppliers and employees also play a role.

These factors are typically evaluated with subjective factors, such as reputation, brand value and management team. Consider enlisting a professional appraiser or investment banker who can help you understand your company's value drivers and position you for success.

1. Manage your expectations
   Understand that selling a business can be complex and time-consuming and usually takes longer than you think to find the right buyer, negotiate terms and gather due diligence documents. Knowing this going in can help you avoid feeling rushed and spending your potential profits too soon.
   
   
2. Practice self-care
   It's essential to take breaks, step away from the process and engage in activiteis that help you relax and maintain a healthy work-life balance. This approach can help you maintain perspective so that you don't jump the gun and spend profits prematurely.
   
   
3. Be Selective
   Your expert deal team can help you by screening potential buyers to ensure they are serious and qualified. Avoid going too far down the road with buyers who may not be a good fit or who can't follow through on financing. It can help you from over-committing too early or over-sharing too much information to those with less than benign intentions.