sales@deal-studio.com
(800) 239-5085
Schedule a Demo
  • Home
  • Platform
    • Industry Websites
    • Professional Content
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
  • Marketing
    • Branding & Design
    • Digital Marketing
    • CBR Design
    • Social Media Graphics
    • Company Newsletters
    • Email Campaigns
  • Insights
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
    • Schedule a Call
  • Contact Us
  • Home
  • Platform
    • Industry Websites
    • Professional Content
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
  • Marketing
    • Branding & Design
    • Digital Marketing
    • CBR Design
    • Social Media Graphics
    • Company Newsletters
    • Email Campaigns
  • Insights
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
    • Schedule a Call
  • Contact Us
  • Home
  • Platform
    • Industry Websites
    • Professional Content
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
  • Marketing
    • Branding & Design
    • Digital Marketing
    • CBR Design
    • Social Media Graphics
    • Company Newsletters
    • Email Campaigns
  • Insights
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
    • Schedule a Call
  • Contact Us
  • Home
  • Platform
    • Industry Websites
    • Professional Content
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
  • Marketing
    • Branding & Design
    • Digital Marketing
    • CBR Design
    • Social Media Graphics
    • Company Newsletters
    • Email Campaigns
  • Insights
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
    • Schedule a Call
  • Contact Us
Blog
Home Seller Articles When Two Million Dollars is Just Not Enough
Seller Articles

When Two Million Dollars is Just Not Enough

Deal Studio December 6, 2017 0 Comments

Not everyone wants to sell when they feel as though they have to sell.  Life changes, such as divorce or illness, can trigger the sale of a business.  Everything from declining business revenue to partnership problems and more can send business owners scrambling for the exit sign.  However, selling isn’t always an option, especially for small businesses.  In this article, we will take a closer look at just such a situation.

The business under consideration is a successful distribution business, which is also a classic example of a value-enhanced business.  The two owners each draw several hundred thousand from the business each year to go along with a range of other benefits.  If hypothetically, the business was to sell for $2 million dollars, each of the owners would receive approximately $1 million.  Of course, this sounds like a sizable amount.  So, what is the problem?

When one stops to factor in such variables as taxes, closing expenses and debt, that $1 million-dollar number has shrunk dramatically, leaving each owner with much less, perhaps as little as just two years of income.  In such a situation, selling isn’t a great idea.  Many owners of small companies want to “cash in” and retire only to discover that their business isn’t worth enough to do so.

Owners who want to retire but can’t afford to do so are in a difficult position.  Such owners may have already “checked out” mentally and in the process, have lost their focus resulting in a failure to both invest financially and creatively in the business.  In turn, this decreases the value of the business even more, as competitors may likely move in to fill the void.

So, what does all of this mean for business owners?  Business owners don’t want to get stuck in the position we discussed thus far.  Instead, business owners want to sell at the optimal moment, when a business is at its high point and the owners are not considering retiring and feel as though they have to sell.

Determining when is the best time to sell can be one of the single smartest business decisions that a business owner ever makes.  Working with a professional and experienced business broker is a fast and simple way to determine if the time is right to sell your business or if you should wait.  Waiting until the optimal moment to sell has passed you by could be a painful experience.

Copyright: Business Brokerage Press, Inc.

FreedomTumZ/BigStock.com

46
3527 Views
Three Common Errors Caused by InexperiencePrevThree Common Errors Caused by InexperienceNovember 28, 2017
Around the Web: A Month in SummaryDecember 19, 2017Around the Web: A Month in SummaryNext

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts
  • Expectations for Business in 2023 February 1, 2023
  • 5 Ways that Sellers Can Focus on the Positives January 19, 2023
  • The Top 3 Reasons Why Deals Fall Through January 11, 2023
  • The Four Essential Stages of a Closing January 4, 2023
  • Take Inventory of Your Company December 14, 2022
Categories
  • Blog 22
  • Buyer Articles 100
  • Buyer FAQ 15
  • Buying a Business 34
  • Content 1
  • Financing the Deal 7
  • General Business Brokerage 9
  • Marketing 6
  • Marketing for Business Brokers 1
  • Promotion 1
  • Seller Articles 291
  • Seller FAQ 35
  • Selling a Business 195
  • Uncategorized 3
  • Using a Professional 6
  • Valuation 14
  • Workflows 1

Automate, accelerate and elevate your deal making
Email sales@deal-studio.com
Phone (800) 239-5085
Request Media Kit
Platform
» Industry Websites
» Professional Content
» Lead Capture Tools
» Sales CRM
» Deal Management
» Integrated Workflows
Recent News
  • Expectations for Business in 2023
    February 1, 2023
  • 5 Ways that Sellers Can Focus on the Positives
    January 19, 2023
  • The Top 3 Reasons Why Deals Fall Through
    January 11, 2023
Newsletter

Terms of use | Privacy Policy

© Copyright 2022 Business Brokerage Press, Inc. All Rights Reserved.