Preparing for the greatest transition of wealth in the history of our country
Vance interviews Rich Hall, Certified Exit Planning Advisor (CEPA) with Silver Fox Advisors, who specialize in small and mid-market business growth and exit preparation advisory services.
Rich answers these questions about preparing to exit your business:
- What’s this transition of wealth you’re talking about?
Baby Boomers own about 2/3 of all privately held businesses. Over the next 2 decades, they’ll be looking to sell or transfer their business so they can retire. That’s estimated at $7 Trillion of wealth will potentially transfer to someone else.
- If the business is generating positive income, what are some reasons why it won’t sell?
Too much dependence on the owner, Too high a concentration of clients (20% of revenue from single client or client group), Services company that relies on people that may leave if owner sells
- for the business owners out there, what should they be doing?
First, they need to get a picture of what the company is truly worth. It may be worth more than they think or a lot less. Most companies today are valued by a multiple of EBITDA (a form of net profit), They should also look at the company from a buyer’s perspective. What would be the value from a pure investor? What gaps exist in people, processes, systems, sales/marketing, etc.
To find out more, Rich can be reached here: www.richhallgroup.com
+1.713.301.5606
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