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If you've been on the hunt for a quality business to buy, you've likely encountered a frustrating paradox. Despite record amounts of capital ready to deploy, truly exceptional businesses seem scarce. Why? The answer lies not in the lack of businesses but in the lack of preparation. As an experienced exit planning and M&A advisor, I’ve seen this time and again: unprepared businesses miss their moment, leaving both buyers and sellers disappointed. Owners often misunderstand what makes a business valuable, rush into the market without proper planning, or fail to position their companies as attractive investment opportunities. The results are very expensive expenditures on advisors, lawyers, CPAs, and more to learn that the business is not attractive enough to sell at the owner’s price or may not sell at all. This is not how it has to be. This article delves into the reasons why high-quality businesses are scarce, examines the systemic issues that perpetuate this problem, and provides actionable advice for owners looking to maximize their businesses’ value and attract premium buyers.
A Journey of Legacy and Letting Go: The Exit Planning Story of a Family-Owned Manufacturing Business
For more than 40 years, Bill Hawthorne dedicated his life to Hawthorne Manufacturing, a $25M business specializing in high-quality, custom-engineered parts for the automotive and aerospace industries. As a baby boomer, Bill valued hard work and loyalty, traits he inherited from his father, who instilled in him the importance of building something lasting. Hawthorne Manufacturing wasn’t just a company to Bill—it was his legacy. He started from a small workshop, building it from the ground up, sacrificing weekends and holidays. Every corner of the factory, every handshake with clients, every hire—these weren’t just transactions or decisions. They were the manifestations of Bill’s life’s work. But now, in his 60s, the thought of letting go weighed heavily on him.
