Current Business
Exit Challenges
Risk &
Reward
According to an article published by Robert Avery of Cornell University in February 2006, "the majority of boomer wealth is held in 12 million privately owned businesses, of which more than 70% are expected to change hands in the next 10 to 15 years."
Mr. Avery further asserts that only 1 in 3 of these businesses will successfully "cash out", because of a fundamental oversupply of opportunities and because of a relative undersupply of liquid capital. Fortunately, market conditions today have changed with an enormous amount of capital now available for acquisitions. However, preparation and an understanding of the process are still critical to a successful sale. For a successful transfer of your business, you will need to avoid the common mistakes made by business owners selling a business:
- Unplanned, No Positioning
- Reactive, Single Buyer
- Un(der)-represented
- Market-Insensitive Expectations
- Price Focused (vs. Terms & Structure)
