Sell Your Business at a Profit

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Sell Your Business at a Profit

Encourager-In-Chief: March 8th, 2017

Why you need to know what your business is worth.

Here’s a fantastic blog from one of my guest seminar speakers, Dr. Jason J Hubler, DBA, CVA of Exit Strategy Solutions, LLC. Enjoy...

I recently met with a potential client. The owner of the business asked me, “Why would I need to get a valuation on my business and think about an exit strategy now when I don’t plan to retire for 10 or 15 more years?” I replied with, “I am glad you asked that question; let’s discuss one of the reasons.”

I confirmed the owner’s age of 54. I then asked him whether he thought he was going to get younger or older over the next couple of years. He replied, “older”. I followed up with the question, “Do you think your chances of a major health issue such as a heart attack, stroke, or death go up or down as you get older?” He replied, “The chances would go up. I know another business owner who just had a heart attack and died at age 63.”

So I asked him the next question, “Can your business operate for three months without you?”. To that he replied, “No, it can barely go two weeks without me.” So I then had to ask, “If you are going to get older next year, and your chances of a major health issue increase, and your business cannot operate more than two weeks without you, then would you or your significant other be able to operate the business or sell your business for a large enough profit to live off of for the rest of your lives?”

He said, “Wow, I never thought of that. How would we solve that problem?” I replied with, “The first step is to get a current valuation of your business. The second step is to setup a quarterly plan to update the value of your business so you know what the value is during any given quarter. The final step is to have an emergency exit strategy and ensure that you have enough money to fund the business long enough to sell it for a profit.”

…and to that he replied, “When can we get started?”

Questions for Dr. Hubler? Contact him here.

Do the things today that others won’t, so you can live tomorrow as others can’t.
- Mike Davis

(The above story is only one of many reasons to have a regularly-updated business valuation along with a long-term and short-term exit strategy plan. I encourage you to click here to register for Dr. Jason Hubler’s valuable seminar, Sell Your Business at a Profit on March 23rd, 9:00 AM, at the Comfort Inn and Suites in Manheim, PA. )

Let me hear from you!