Buying And Selling a Businesses
Business owners looking to buy or sell a company may think they can skip the creation of a new or updated business plan. But that can be a critical misstep.
“If you are looking for buying or selling a business, and you are asking yourself whether you really need to write or update a business plan, then you need to ask yourself some even more important questions,” said Joseph Ferriolo, director of Wise Business Plans, which provides individualized, custom-designed business plans for startups and expanding businesses. “If you’re looking to sell, you need to consider whether you’re really presenting your business in the best light without a clear road map showing the new owner that success is reachable.
“And if you’re looking for buying and selling a business, well, you need to ask yourself who is going to be in control of the business: you or the previous owner. Without a plan that you have a hand in crafting, you are letting someone else drive your future.”
When considering the purchase of a business, Ferriolo said reviewing the company’s current plan to ensure it aligns with your expectations, goals, and acceptable risk levels are basic due diligence.
This means a smart purchaser will want to see an up-to-date business plan before buying any company, so sellers should be prepared to produce one.
Business Plan for buying and selling businesses
“A business plan is really a living document, evolving with the company. It’s more than just a way to secure funding — it’s the structural support for growth.”
Without clear evidence of good planning, a business can — and often should — look like too much risk to a potential buyer, he said.
“The buying or selling businesses is a big decision that can impact many lives,” Ferriolo said. “That’s the kind of decision where planning is more than a bonus — it is a non-negotiable requirement.”