I heard a great comment today from an M&A Advisor that we are working with on a deal. This really struck a cord- we work all the time with exiting entrepreneurs, and our guidance in the valuation world often stops at Step 1 of the Exit Planning process. So when Matt said:
I also think timing is important – when to sell, not just from a personal standpoint but from a business strategy standpoint. Profits don’t always go up; businesses have cycles; owners can burn out; business reach thresholds when they need more investment. Understanding timing is just as important as understanding the magic number.
Sometimes waiting just a little bit longer to sell (for any number of reasons) is the right choice. But it makes a heck of a lot of sense to consider the ongoing, uncontrollable risks that are attendant with owning a business.