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The past four years have seen an unprecedented level of buy/sell activity in the industry. Mergers and acquisitions have dominated the industry. Private equity groups have invested heavily in the largest companies in the industry, further increasing consolidation. Consolidation will continue, but it will be different than it has been in the past. As a business owner how do you know when to sell and when to grow? There is no "one size fits all" answer to that question. Perhaps the largest consideration to effectively answer that question is to know your timeline. The second largest consideration is to know your walk away price. When working with clients, whether we are growing their business or preparing them to sell, I always ask these two questions. |
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Your Timeline Many clients are surprised to discover that your timeline can be play a larger role than your walk away price when developing a growth plan. To know if it is appropriate to grow or to sell, it is important for me to understand your timeline. Everyone has a different exit date in their mind, but by far the most common date I hear is “I want to be done working by the time I’m 60”. The second most common one is 50. Sometimes I hear “sometime in the next 5 years”. No one has yet to tell me they want to be done by 40. Your timeline impacts how you grow, but it also impacts the risk you take on in your business too.
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