Let’s face it. The thought of passing on your business to someone else can be daunting and overwhelming…
And there’s always more involved than simply securing a financial outcome that works for you.
But staying in the business forever isn’t really an option either. So why do so many business owners delay their exit?
✔️ Emotional Attachment
Some business owners become emotionally attached to their business and find it hard to let go. They can feel that their business is their life’s work and their personal identity has merged with their ownership.
✔️ ‘Die at the Desk’ Syndrome
Not a joking matter as I know several business owners who died permaturely in the last couple of years. But some owners actively want to work until they drop. That’s fine if you have already completed your bucket list. Here’s the point: there are countless routes to stay fulfilled beyond exiting your business and let’s be honest… it’s not always in the interests of the owner OR the business to carry on running the company forever.
✔️ Financial Security
Many SME owners rely on their business as their primary source of income and are hesitant to sell until they’re financially secure. With the right plan and people in place, it’s possible to exit and achieve ongoing financial security… but you need the right plan 🙂
✔️ Lack of Succession Planning
Failure to build a clear and effective succession plan simply makes it more difficult to find a suitable buyer or buyout at an acceptable valuation.
✔️ Business Performance
Owners might delay their exit if the business is not performing well. But beware of descending into a lengthy ‘wait and see’ mode without a clear view of how you will secure a successful exit – and at the right valuation.