Many business owners, particularly founders, have a strong emotional attachment to their companies, which can make it difficult to consider selling. Preparing for a business exit requires both financial planning and personal readiness. It's important to speak with a financial advisor to ensure the sale will provide enough money to replace the owner's income, and to plan what the owner will do after the sale, since many owners experience burnout from doing tasks they do not enjoy.
Owner dependency is a significant issue, and delegating tasks is essential to address it. This often involves a shift in mindset for the owner. Other common mistakes owners make include:
Not having good financial systems
Having dominant customers
Failing to protect their intellectual property
A key factor in a successful exit is business growth, as growth can make a business more appealing to buyers. It also can hide operational problems. Ultimately, many owners prioritize ensuring their employees are taken care of and want to see their company’s legacy continue.
John Martinka has almost 30 years of experience in the buy-sell/mergers and acquisitions world. He is the author of the book, "Exit with Style, Grace and More Money," and also wrote a previous book entitled, "If They Can Sell Pet Rocks, Why Can't You Sell Your Business For What You Want?". He is the founder of Nokomis Advisory Services. He advises business owners on how to prepare their businesses for sale, focusing on both the mindset of the owner and the practical steps of the sales process. Martinka emphasizes the importance of proper financial systems, delegation, and growth in maximizing the value of a business.
John Martinka LinkedIn: https://www.linkedin.com/in/johnmartinka/
Nokomis Advisory Services: https://nokomisadvisory.com/
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