When it comes to exiting their business, many owners get confused and frustrated because no planning has taken place and they’re ready to exit now. If they’ve been the through the Great Recession and then Covid, they’re especially ready because they’re tired.
I have several clients that are Baby Boomers and are beginning to receive offers to purchase the business. They don’t realize that these buyers are professionals. Their purpose is to attempt to low ball the purchase of the business and drag the owner through a process using delay tactics and poking holes into the business to the point of submission.
Together, we’re going through a process of planning. That process gives guidance and provides insight into building a company to pass on, what the options are, and how to move forward. One client describes the process as well thought out and deliberate, giving this owner confidence in the plan that will pay dividends in the future.
I have another client who’s been in business over 15 years and was curious about the sale of their business. The value that he has created is significant. But according to advisors, if the business was sold now, the owner would leave money on the table. This owner could be susceptible to an approach by a professional buyer because little planning has taken place.
Maximum value is the place where opportunity and preparation intersect. Recent studies indicate that 80% of business owners want to stop working in their business in the next 10 years. However, only 35% have obtained a business valuation and only 26% have created a business succession plan. To get maximum value for your business, carve out some time to do the planning necessary to work on the business and get a business valuation and create a business succession plan. Delaying the planning will only result in getting less than maximum value. Start today!
