726,735 UK companies were dissolved last year.
This was a record, up nearly 10% on the year before.
Most weren’t insolvencies. They were closures. And many were profitable businesses with no buyer, no successor and no plan.
And selling isn’t a safety net either. Of the businesses that do go to market, up to 80% never find a buyer.
Given the nature of my work, I'm reminded daily that the UK is full of good businesses, run by owners approaching the day they want their life back.
And they also want something to show for all their efforts.
So what happens when an owner finally wants out?
Well, a business that only works because the owner is in the driving seat has considerably less transferable value to new owners.
And therefore it's worth less.
Or simply unsellable.
The businesses that are sold - and command a real price - are the ones that already run without their owner.
Build that and every option opens up: sell, scale further, or simply step back and generate more passive income.
So ask yourself two questions.
If you wanted out tomorrow, could your business be sold without you in it?
And if not, how much of its value walks out the door when you do?
