Waiting To Sell Your Business Might Backfire

I hate it.  Telling someone who has worked and sacrificed 40 years that their business is worth as much today as it ever will be.  Worse is telling them it is worth less today than it was last year.   The fact that this Wall Street Journal article underscores we are not alone is no solace.

“The average business coming to market has lower earnings [than] it did in 2007-2008, therefore the prices are lower,” says Barry Evans, partner at Acquisition Services Group, a business brokerage in San Diego. “If a business has lost 20% of its earning power in the past few years, it will sell for at least 30% less today.”

Andy Birol, a small-business consultant in Pittsburgh, says many of his older clients are at a crossroads: “They either have to sell for far less than they need or deserve to get out, or they have to muster up the energy to recommit themselves to the business,” he says. “They’re conflicted.”  Read More: The Economy Stole My Retirement

What I Would Do:

Funeral Home owners have 80-90% of their personal wealth locked up in their business.  If you are over 50 you need to start working on future plans now.  (This is self serving but this is what I do for a living)  I am encountering too many people who have worked, taken risks, and sacrificed only to find at the end of their career they have little to show for it.

I don’t expect too many funeral homes to go into bankruptcy but I do expect a lot of owners to simply turn out the lights one night and go home…for good.  I absolutely cringe when I hear:  

“I didn’t expect it to turn out this way”

But it doesn’t have to “BE” this way.  For most of you there is time to make the changes you need.  For others you have enough value to get out with your reputation intact.

So, what I would do…and I will try not to do this too often… is call ME.  919.926.0688