Can declining health force me to sell my business faster?

Declining health can make a sale feel urgent, and it can limit how much of the work you are able to do yourself. Preparing records, finding a buyer and completing due diligence still take time, and how long a sale takes shows what is involved. BDC recognizes the situation directly: it lists medical issues that prevent an owner from adequately running the company as one reason owners decide to sell.

What BDC says about selling under pressure

BDC says many owners wait too long before starting to plan a sale. It adds that they then sell at a time that is not ideal, for example because of health issues, and do not get the best outcome compared with what planning would have given them. CFIB likewise warns that poorly managed ownership transitions may result in owners making a premature sale, and so not receiving the full value of their business. Preparation done early is preparation you are not forced to rush later, and it does not commit you to selling.

Steps that shorten the runway

BDC advises documenting and updating standard operating procedures so operations are easier to transfer, and reviewing your records with an accountant so interim statements are accurate. BDC also says that how easily a business can operate without its owner affects its value, and advises filling management gaps so the business does not rely on your presence to keep functioning. Ask your lawyer who can sign for you and for the corporation if you become unable to act, because the rules differ by province.

Keep your options open

BDC describes owners who remain involved after a sale through vendor financing, an earn-out, a phased transfer of ownership, or a role as an executive, board member or advisor. Whether any of these suits you depends on what your health allows. BDC also notes that, depending on a listing site’s confidentiality procedures, word of a sale could reach employees, customers or suppliers, so plan how you will communicate with them.