Exit, not fire-sale
A company broker I met recently told me that oftentimes business owners who approach them have unrealistic expectations in terms of valuation and timeline – they think that in a matter of a couple of months they are going to be able to retire to their dream sunny destination.
This led me to suggest a win-win-win cooperation – they refer to us such business owners so we can help them create a plan that in 2-3 years will make the business valuable enough for their retirement plans to become a reality.
The clients will get more for their life’s work, the broker’s commission will be higher, and we will get a new client.
To my surprise the broker said that this will not work – their clients want out NOW!
TBH, I was shocked. To think that people will spend a lifetime building a business only to sell it for a fraction of what it may be worth only because they failed to plan ahead.
It’s a bit like people that don’t save for pension.
If you have a business or know anyone who does please don’t (let them) make this mistake – allow enough time before the desired exit date to make sure to maximise the asset’s value.
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