A lot successful business owners are reeling from the combined effects of the expanding credit crunch and economic slowdown we are currently experiencing.  Many owners who had been thinking about selling their companies and creating long-term financial security and more free time for themselves now feel trapped and  unable to pursue their dream.

As a middle market investment banker and exit strategy advisor, I have recently observed an overriding temptation in business owners to simply ride out the current storm and wait for the next wave of M&A activity “the next valuation peak” and then return to their thoughts to selling their business.   The problem is, if they wait until the next wave comes, it will be too late to maximize their opportunity, and they risk missing it altogether (again!).

My advice to middle market business owners is this: don’t just wait for the next wave to arrive. Expect it and Read more »

Or Is It A “Real” Business?

Many self-employed people consider themselves “business owners”, but are they really? There is an important distinction between owning a business and owning a job. Does it really matter which category your enterprise falls into? Yes, it matters a lot if the owner plans to exit the business at some point in the future by selling it.

Every closely-held business owner grossly underestimates the significance of his or her own, personal value to their business. This includes the value their contacts, their relationships, their reputation, their experience, and their personal efforts. They talk about how “great” their employees are, and say things like, “this business could run on its own without me”. Ninety-nine times out of a hundred, they are wrong! In fact, most of these businesses would be severely impaired, if not destroyed, upon the unplanned exit of the owner. Read more »