I'd like to suggest a question to ask yourself. Do your plans for the future of your company include selling while at a peak in value?
Some companies we meet with at WarrenBDC, show neither top or bottom line growth. Owners have instead, resorted to stalling growth and squeezing whatever cash they can from the business. Some Owners are tired and lack the energy or incentive to continue growing their business, let alone sell it. They think they'll have enough to live on in retirement but continue to come into work more out of habit than to make a real difference. Often working is the result of not having an alternative way to spend their time.
Sound familiar to you or is it someone you know?
A lack of hunger permeates the company and over time the business stalls or worse fails because no new ideas or re-investment are made. We ask Boomer Owners to consider this. Even if money is not the incentive, why would you let your lifetime of work just peter out and end with a failed or deflated legacy?
It's a big question.
Some Owners step back, taking extended time off or even retiring and leave their trusted, loyal employees to run the company. Sure your employees know their jobs but does that qualify them to run the whole show? In our experience, the answer is no.
Often it does not end well.
There's always a 'peak value time' to sell a company and Owners who miss this selling sweet spot could be letting over 50% or more of their potential enterprise value just slip away.
What a waste.
Every day we speak with Boomer Owners who are thinking about retirement and selling their business. Some are sitting very close to the peak time and don't even realize it. A little effort and the increased value could translate into $ millions.
Too many believe they can get there themselves while continuing to run the business as usual. The truth is they can't. By the time they realize this, the opportunity to sell at a premium is lost.
It doesn't have to be this way.
Maximizing enterprise value and negotiating a successful business sale to achieve that 'peak value' requires years of experience and many different skills. It cannot be treated just like another sale or left to your employees and trusted advisers. You have to ask yourself, what if any experience do you or do they have in selling businesses?
The answer is likely none.
When it comes to outside help, we say to Boomer Owners, you have everything to gain and nothing to lose by bringing in a 'fresh set of experienced eyes' to help maximize corporate value? Do you want to be operating at peak levels when Buyers come knocking and sell at a premium price or not? This assumes you are a desirable company and can attract Buyers in the first place. Big assumption, not always realistic.
Call me at WarrenBDC 905-499-3768-702 or email eric@WarrenBDC.com