
You’ve never been known as someone who has trouble making decisions. But here you are swinging like a pendulum when it comes to following through on selling your business.
You’ve taken your business as far as you can. You have other ideas about what you’d like to do with the rest of your life while you still have the health to act on it. Your wife is keen on travelling and although you’ve managed to take a vacation every year, it’s not the same as really stepping away from all the pressures of the business. It’s a weight you’ve carried for many years— your shoulders loosen up at the mere thought of releasing it. You want out.
Last week you met with a business broker who worked with you to determine its most probable selling price. You won’t come away from the sale with as much as you first thought, at least not outright, as you’ll likely need to take back part of the purchase price as a loan to the buyer. It’s the one aspect you hadn’t accounted for. You’ll get a good return on your money, though. And the broker is confident you’ll be able to find the right buyer to look after the staff and customers with the same care you’ve shown them.
You left the meeting feeling pretty good about your decision and with a likely date for taking your business to market. You’ve earned it.
And yet —three days later — your closest friend, and your accountant and lawyer are urging you to put on the brakes. They remind you of all you’ve put into your business: Don’t you want more? Can’t you do better? How do you know you won’t be left holding the bag? Do you really want to risk all of that?
They’ve got you rethinking everything. Now what?
Should I go or should I stay
We see scenarios like the above a lot. All the right elements for the owner to sell their business are in place but then emotion takes over. Things come to a standstill. The attachment to the business or uncertainty about what lies ahead takes over. Even at the point of closing. The owners need to consider the risks of not completing the sale. Ours is a world of rapid change where any of the following can weaken their negotiation position:- a market downturn
- the loss of a key employee
- a new competitor
- changes in regulations
- an economic downturn
- a change in interest rates
- a change in occupancy cost
- equipment breakdown and/or a capital expenditure requirement
- technological or demographic changes