Ugly Surprises That Can Derail The Sale Of A Business
Business owners often page a disparity between what they currently receive from their businesses and what they can expect to receive from the proceeds of their sale. The sale price, when invested, is unlikely to generate anywhere near the kind of cash flow that the business itself was generating.
Forbes today covers this disparity and the ugly surprises facing business owners when it comes to selling their business. These include not getting a price close to what they’d like to see and not getting the full asking price in cash (there’s usually an element of deferred payment).
And actually finding a buyer and closing a deal is a lot more difficult than many vendors appreciate.
Your business is worth a lot more to you than to anybody else. After all, you created it, spent time and energy developing its value, and have nurtured it ever since. You’re emotionally attached to the concept of being the master of your creation. But today, I’m talking about economic value. Your business is much more valuable to you economically than to anybody else.
The full article by contributor John Brown is available here.