That seems to be a sound strategy. You spent years building a business. Now that you’ve achieved success, selling the business to someone else gives them a profitable business and gives you a nest egg for retirement.
What is fair? How much is your business worth?
The short and correct answer is that your business is worth whatever someone is willing to pay. How do a buyers and sellers agree on value?
My chiropractic colleagues have all kinds of nonsense they pass off as expertise. It is “wisdom” that has passed down from one generation to the next. Some of it actually isn’t too bad. Few have any training in business or how to think about business acquisition.
One of the courses in my MBA was The Capital Budgeting Decision. We spent a semester learning complicated methods of evaluating uses of capital. In the end, the professor told us that most executives just used two simple methods.
I completed the MBA in 1978. I completed the course for a real estate license in 2002. Although selling a business may have nothing to do with real estate, it is within our practice scope. The method taught to value a business was the same that I’d learned during my MBA.
If you know how to value your business, you know how to set goals so that your business can provide that retirement nest egg. I boiled it all down to about an hour. You can learn how as part of the 20-20 Business Education for Healthcare Entrepreneurs.
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