Page 3 - Why Are Fifty Percent of Business Owners Unhappy After They Sell Their Company?

That doesn’t necessarily mean these These results match up with other research
business owners are planning to sell in the on business owners selling their companies,
near future or that they even have a specific and with our own experiences and those of
buyer in mind. But it does suggest the idea other professionals in the field.
of selling is a serious consideration—one
that should be fully explored by most of you. Upshot: Without question, many business
owners are ultimately unhappy with the
But among those entrepreneurs who also results from the sale of their companies.
tracked the sales activities of other business
owners to better understand the process The obvious question to ask: What is going
and evaluate the results, the overarching on?
impression is that the sellers weren’t thrilled
with their outcomes (see Exhibit 6): For answers, it’s important to realize
that post-sale satisfaction levels can be
• More than 50 percent of the sellers influenced by a variety of factors—some
were dissatisfied with their post-sale of which may not be financial in nature or
results—especially the financial results within the seller’s control (the timeliness
(including the valuation, the agreed- and transparency of the process, how well
upon sales price, the tax hit and the or realistically the expectations were set in
residual proceeds). advance, the expertise and professionalism
of the advisors, interactions with the new
• Only about 35 percent of sellers were
owners, etc.).
satisfied.
That is why it’s essential for all business
• A mere 12 percent were highly satisfied.
owners to understand where and how they
can have the greatest impact on the future
value of their business—and their own
personal wealth.
12.3%

THE SOLUTION: Pre-

sale planning is the key
EXHIBIT 6
General Overall
Perception of the
Results of a If you’re going to sell your business, you’re
35.2% Business Sale
probably looking to make sure you derive
the greatest financial benefit possible.
52.5%
Unsatisfied Getting the most for a company at a sale is
typically a key goal of business owners.
Satisfied
Highly Satisfied
Trouble is, while this singular objective is
pervasive and can be all-consuming, it
Source: AES Nation, LLC. N = 179 business owners. tends to be a little shortsighted.

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