Business matters and determine a market value. The best resource for this would be a specialized real estate agent. The real estate agent can explain the best way to prep your property for potential buyers. 2. Find an attorney who specializes in business sales – preferably equine businesses. You have some choices to make as to whether you want to sell the property, the actual business or both. You may just want to dispose of the property but now want to work for someone else and take the customers with you. Or you may want
Selling Your Business
to continue to live on the property but sell
By Carol Gordon, CPA
so select an attorney who can help you
your customer list, horses and tack. There are plusses and minuses to either choice make the best decision.
It could have been your life’s work or something that you started a few years ago and decided that it wasn’t for you. It’s your business. And now, you’ve decided that it’s time to sell. However long you’ve owned it, it’s personal. It’s a reflection of you and your family.
3. Prepare to speak with potential buyers. Be aware that while you may cater to adult amateurs, someone else might be looking to buy a riding school for children. You may do a lot of the maintenance
Typical initial questions for a potential
The first and most important part of pre-
yourself, but the new owner may have to
seller are:
paring to sell your business is making sure
hire extra help. Be ready to discuss mul-
“What’s my business worth?”
that you understand your business inside
tiple options for various features of your
“How long does it take to sell a business?”
and out so that you can address a potential
business – e.g. that extra barn that now
My answer to both of those questions would
buyer’s question before they even ask it.
houses school horses could be used for
be “It depends.”
Not just understanding who the best lesson
DIY boarders, leased to another instruc-
horse for walk-trot students is and how to Preparing your business for sale in many
fix the frozen hydrant – but EVERY aspect
ways is similar to preparing a horse for sale.
of your business.
tor or offer quarantine services. 4. Take your business to market. Just like selling a horse, taking the time to
It takes time, thought and effort. You will be wearing multiple hats (nothing new there!).
The five key areas for your focus should be:
prepare for the sale is the most important part
You’re still the owner of the business but
1. Legal – contracts (boarding, lessons,
of the process. But taking the time will make
you also need to shift your mindset and start thinking like a potential buyer.
leasing, etc.) and risk management. 2. Finance/Accounting – financials and possible sources of funding.
What kind of questions would a buyer ask? “How will I fund the purchase of this business?” “What is my business plan?” “What are the potential target markets for this business?” “What are typical monthly expenses?”
3. Human Capital – employees, vendors,
security (credit card processing, etc.) 5. Sales and Marketing – target markets, advertising, customer retention, etc.
To be able to address these questions and ef-
understand each of these areas, it’s time to
fectively prepare your business for sale, you
implement a plan.
need to take time to develop and implement
Summer 2021 | Riding Instructor
cades working at this business every day. You owe it to yourself to finish the job right.
customers.
Once you feel confident that you know and
22
painful. You’ve spent years or perhaps de-
4. Information Technology – data and data
…… and so much more.
a comprehensive plan.
the rest of the process much simpler and less
1. Assess the salability of your business
About the author: Carol Gordon is a CPA with an MBA from Boston College and the owner of Carol Gordon, CPA, which provides consulting services to equine-based businesses. You can contact her at cgordoncpa@gmail.com. If you have any questions that you’d like covered here, please email her with your suggestions.
