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Navigating the intricate landscape of business sales demands meticulous planning and strategic execution to achieve the desired results.  This process can represent the culmination of a lifetime’s endeavor, requiring expert guidance to ensure a successful transition.  Innovative Capital is pleased to introduce Aaron Putroff, CEO of Living Legacy.   

Aaron is a seasoned professional holding certifications as both a Certified Financial Planner and a Certified Exit Planner. His company specializes in crafting comprehensive financial strategies tailored for business owners, families, and professionals. Based in San Diego, CA, Aaron and his dedicated team are here to offer invaluable wisdom and expertise. 

With a thorough understanding of the necessary actions and a provewn track record for facilitating their seamless execution, Aaron stands ready to guide you or your clients through every step of the process. To learn more about Aaron Putroff’s expertise and services, please visit: 

You may find this helpful information and additional Living Legacy resources here:   

Preparing for a Successful Third-Party Sale  

Provided by:  Living Legacy Financial & Insurance Services Business Owners Newsletter 

Many business owners choose to sell their businesses to third parties for several reasons. If you’re thinking about pursuing a third-party sale as your business exit strategy, consider these four steps to prepare yourself for a successful third-party sale.  

Of course, as with any plan for a successful future, your first step is to determine what it takes to achieve financial independence with help from your Advisor Team.  

Install Next-Level Managers  

It’s difficult to overstate the importance of next-level managers. This is especially true if you’re considering a sale to a third party.  

A strong next-level management team is the foundation of your company’s value to outside buyers. They often drive operations, create new efficiencies, and, most importantly, keep the business thriving after you leave it.  

If your company relies on you for its success, buyers may hesitate to consider your business. Generally, buyers are most interested in businesses that run smoothly without the owner at the helm. Next-level management teams position you to leave the business on your terms.  

In some cases, business owners who have thriving businesses but no next-level managers must either postpone their retirement or stay with the company after they’ve sold it. This is often not ideal for many business owners.  

Create Business Continuity Plans 

Business continuity plans are non-binding guides that help your family and business address an unexpected event, such as death, incapacitation, or something else that prevents you from running the business.  

Having this kind of plan can provide clearer guidance about your goals. For many business owners, planning for a successful future doesn’t end with achieving financial goals. They may have other aspirational goals they’d like to achieve in tandem.  

For example, say you were in the middle of planning a third-party sale and were suddenly incapacitated. Your family and advisors may know that you wanted a certain dollar amount for the business. What they may not have known is that you also wanted to keep the business in your community.  

But the only way to achieve your financial goal at the time you were incapacitated would be to sell to someone who wanted to move the business out of the community.  

A business continuity plan can help you elucidate your goals in instances where you cannot speak for yourself.  

Assemble A Negotiation Team

Third-party buyers almost always assemble top-notch negotiation teams when purchasing a business. Though business owners are good at a lot of things, negotiating a business sale is an entirely new arena for many.  

Negotiations are often complex and require more time than a business owner has to fully dedicate themselves. This is especially true if you don’t have a next-level management team.  

It’s no secret that buyers want to maximize their value with any business they purchase. They’ll do comprehensive due diligence and use their findings to pursue this goal. 

Assembling a strong negotiation team can help you find weaknesses in your business and then strengthen them before a buyer finds them and tries to leverage them against you. They can also represent your goals, both financial and aspirational, at the negotiation table.  

Negotiation teams do everything they can to get you the best deal you can get. They also have specialized skills, such as in valuation, tax reduction, and law, that can protect your interests.  

Avoid False Starts Whenever Possible 

When pursuing a third-party sale, your first chance is often your best chance. This doesn’t mean you must accept the first offer proposed. What it does mean is that you don’t want to pull your business off the market because you didn’t get an offer you liked.  

This is called “tainting the marketplace.” When a business comes off the market without selling, it tells potential buyers that there may be something wrong with the business. This may make future buyers more hesitant to purchase your business. Fortunately, by installing a next-level management team, creating business continuity plans, and assembling a negotiation team, you reduce the likelihood of tainting the marketplace.  

Living Legacy strives to help business owners identify and prioritize their objectives with respect to their businesses, their employees, and their families. If you have questions on this topic, we can help with more information or a referral to another experienced professional. Please feel free to contact Living Legacy at your convenience.  Meet the living Legacy team:  https://livinglegacyllc.com/our-team/ 

At Innovative Capital, our strategy involves leveraging the expertise and insights of esteemed advisors like Aaron Puttroff and Living Legacy. By featuring their valuable knowledge, we aim to provide comprehensive guidance to our audience navigating the complexities of business sales. 

Continuing the Conversation 

We’re committed to providing valuable content to assist business owners in making informed decisions.  Innovative Capital specializes in commercial lending and financing business mergers and acquisitions.  

Access the Full Content 

Explore the full content and insights from Aaron Puttroff and Living Legacy in their October 2023 newsletter here. Gain valuable knowledge and insights to prepare for a successful third-party business sale. 

As we collaborate with experts like Aaron Puttroff, our goal remains to empower business owners with the guidance they need to execute their business goals.  Let’s start a conversation and see how we can assist your business.

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