One hundred percent of business owners exit their businesses - either by design or by default. The question that must be answered is: will it be on your terms or someone else’s?
When comparing two similar businesses in the same geography and industry and of a similar size, if each owner has different reasons for exiting, they will likely have drastically different business values. Other factors that can impact the value of the business include the owner’s steps to prepare for exit and the proportion of shares owned. When added up, these factors can predict up to 53% of the difference in the value of two seemingly similar businesses. As a business owner it is in your best interest to prepare your business for a successful sale, because the alternative may be devastating to your retirement, your health, wealth and to your legacy.
The current statistics regarding selling a business are staggering: 1 on 10 sells successfully and given the current state of ownership in Canada, with approximately 50% of all private businesses being owned by the Baby Boomer generation, it is expected that over 700,000 business owners in Canada expect to transition over the next 6 years, making it a Buyer’s, not a Seller’s market. If you want an exit on your terms, the only alternative is taking the necessary steps to get it sale ready.
In the attached eBook, we discuss both the reasons owners exit, including how those reasons affect exit value, and the steps that they should consider prior to their exit to ensure that they are prepared personally and financially for that exit.