Voted #6 on Top 100 Family Business Influencers, most influential expert on Wealth, Legacy, Finance and Investments: Jacoline Loewen LinkedIn Profile

February 13, 2018

First step for business owners preparing for sale is to get a valuation

Perhaps that is why the recent research by Investor Watch reveals that nearly 60% of wealthy investors would consider starting their own business.

At the same time, the favorable economic environment is spurring some business owners to cash out. And it remains to be seen who will fill the void.

  • 41% of business owners plan to exit their business.
  • 80% will sell or close the business—or they’re not sure what to do. 
  • Another 20% intend to give the business to family.
Business owners who plan to sell are far too often unprepared for the process. Less than half have had their business appraised, for example. I am always shocked by how many business owners think they only need an accountant and a lawyer to sell their business, The first step of getting a valuation by a professional advisor would quickly show them the value of their business.  Equipped with a reality check on their assumed price for their business, they can then see if their cash flow of their business will be a better long term wealth strategy or time to sell and invest the payout. Having an investment banker on the team to do the sale of their business becomes obvious after the sale of the business.

At the same time that business owners are thinking of exiting, 58% of wealthy investors would consider starting a business. Together, these trends are increasing the need for advice and creating growth opportunities for Financial Advisors.

Please give me a call if you are thinking about how to maximize the wealth of your business.  
We have much to offer business owner clients and prospects. From lending, insurance and retirement plans to pre-sale planning, Employee Stock Ownership Plans and more, All good conversations to have when it comes to building your long term wealth.
Join me on Twitter @jacolineloewen
Check out my book for business owners wanting to sell to private equity.
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