Typically, 75% or more of a business owner’s net worth is in their business – but business owners frequently sell their business for less than the real value of the business.
There are four reasons why business owners frequently get less than full value when they sell:
- For most business owners, selling their company is a once for twice in a lifetime experience, and they don’t know how to maximize the value of their business when they sell.
- Owners of small and mid-sized companies frequently sell their business to family members or employees – and family members and employees are not able to pay what the company is worth.
- Business owners leave money on the table when they sell because they think selling a company is easy and they can do it themselves or use their attorney or accountant to help them. Getting maximum value when you sell a business is not easy – and most attorneys and accountants do not have the skills or experience to get full value for a business owner.
- When owners sell to third-party buyers, the buyers frequently have extensive experience in buying companies, and they can take advantage of the business owner’s inexperience in selling companies.
Building on our experience in selling more than fifty closely held and family-owned companies, Corporate Performance Group and Waypoint Private Capital provide specialized expertise and support to help business owners and entrepreneurs sell businesses for the maximum possible value.