Do you ever think about how to exit wealthy from your business and how you will transition your wealth to live comfortably in the next stage of your life?
I want to give you some insight into why planning for your exit today and not sometime in the future is so critically important.
First, let me offer some sobering statistics to help you understand some of the challenges that need to be overcome to exit wealthy.
- Typically, 80% of a business owner’s net worth is in their business
- Only 1 in 5 businesses that go on the market actually sell
- Of the 20% that are bought, most of those will be purchased below what they COULD sell for
- 75% of those who exit “profoundly regret” the decision within 12 months
We know there is no shortage of private capital looking to buy businesses. So, why aren’t the other 80% of businesses sold?
Because nobody wants to buy them the way they are! The vast majority of businesses that go to market are simply not in a saleable state.
And don’t think you’re immune because you’re banking on a family transition. Historically, the success rate of family-owned businesses transitioned to second generation is about 30%. To fourth generation and beyond, 3%.
In this video, I explore why you can benefit today and in the future. By focusing on the valuation multiple, you can accelerate your business’s value and also drive income.
