Are you hoping to retire in the next ten years? Is selling part of your plan? Or maybe you’re planning to transition to a son/daughter or employee. Either way, you need to deal with facts, not feelings. Where can you get the facts? Contact me, Tom Crouser at firstname.lastname@example.org and let’s discuss your plans for transition with no cost or obligation.
Transitions can be tricky. Here are some thoughts for you:
Selling the business
It is estimated that for all of the businesses for sale in the US, only about 35% actually sell. Further, it often takes two to five years. That’s important for while you are dreaming about retirement, you must continue to run the business for growing businesses sell for more than those that aren’t.
We don’t get to value the business our way regardless of how logical it may seem. Those that loan money (banks for instance) to people who buy businesses have their own way of valuing a business and it’s based on financial principles. That’s why we use financial principles when valuing, not a theory some printer has made up.
Internal Business Transition
Many smaller shops are transitioned internally to a son/daughter or employee.
Transitioning to a son/daughter or key employee can be tricky especially if there are siblings involved. One issue is parents trying to be “fair” with the children and to many that means “equal.” Unfortunately, that often leads to a breakdown in the family relationships if not done properly. Contact me, Tom Crouser email@example.com to discuss your situation. In the meantime, here’s a tip: don’t be “fair” with the business. If you want to be “fair,” then sell the business and be fair with the proceeds.