Your baby is not ugly, it just needs to grow up!

I have this conversation with family business owners a lot!

I'm not talking about their children.

I'm talking about their company.

Many business owners are baby boomers looking to sell their company, transition it to the next generation, or simply head into retirement with an ongoing income.

The problem is that their company cannot run without them today.

Here's a few factors to consider if you're in that situation and want to maximize the value of your company:

- Absent owner - The company needs to be able to run without you. Otherwise, buyers will want an earnout provision which may not be in your best interest.

- Valuation methods - Most companies today are valuated based upon a multiple of EBITDA. If you or your family is treating the company like the cookie jar, it will hurt you. Make it as profitable as possible.

- Transition plan - Quite often, investors want to see at least 2 years of items 1 & 2. Hence, develop a 3-5 year plan to transform your company into a beautiful adult (rather than an ugly baby).

If you find yourself in this situation and would like to talk, let me know.

I offer a company assessment that outlines exactly what is needed to prepare for the next phase.

Let me know if interested in discussion further at www.richhallgroup.com/contact