According to research from the Exit Planning Institute, only 20% of businesses will successfully transfer or sell, while 80% will not. And in that 20% of businesses that do manage to sell, 75% of those owners profoundly regret selling within one year of the transaction.
In this episode, Eric Scovill discusses important factors for business owners to consider when deciding whether and when to sell their company. He discusses reasons for selling a business, some steps business owners should take before a sale, what life after the sale looks like, and the importance of maintaining purpose and priorities like one's relationship with God.
Here are some topics from today’s discussion:
Episode Highlights:
[02:38] Reasons to Sell a Business
Here are three key reasons Eric discussed for potentially selling a business:
[13:09] Stewarding Your Legacy
Eric explains that if a business owner's goal after selling is to produce an income stream with similar tax advantages as their business, they will likely need to invest in alternative asset classes like real estate, royalties, or private placements. However, Eric cautions that stepping into investments as a truly passive form of income could remove the owner from their area of expertise. Instead, he suggests it may be better to bring in managers to continue running the existing business rather than attempting to replicate the income as a novice investor in new asset classes.
[20:20] Adopting a Buyer’s Mindset
Some of the key strategies Eric discussed for adopting a buyer's mindset when preparing a business for sale included:
Resources Mentioned:
Generational Equity
Secrets of the Secret Place by Bob Sorge
To Whom Much is Given by Jay Link
Halftime by Bob Buford
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