Baby boomer entrepreneurs can have a lifetime of hard work result in disappointment and financial anxiety when they go to exchange the keys to their business for money.
The following are four reasons why entrepreneurs fail to sell their business.
- Fear of the unknown. During buyout negotiations, selling owners come to realize that they have no idea what they’re doing. This causes them to become fearful about possibly exchanging their life’s work for less than its fair value.
- Uncertainty about buyout terms. Selling owners also recognize that they’re unable to evaluate the merits of various proposals being offered by prospective buyers. This causes entrepreneurs to act wishy washy during negotiations which, in turn, causes the deals to never materialize.
- Internal successor entitlement attitudes. When owners seek to institute an internal sale, they’re often confronted by successors who feel entitled to own the business even though they don’t have the means to pay for it. Then, if the decision becomes one where it’s necessary to instead sell to an outside party, the internal successors have a strong negative emotional reaction. Their behavior becomes a detriment to completing the outside deal, and adversely affects the business’s internal dynamics going forward.
- Insufficient business values. Baby boomer entrepreneurs too often don’t think about operating their business in ways to build maximum equity value until they’re too close to the time when they want to extract the value. The result is that they can’t afford to remove themselves from receiving the income and perks the business affords them.
The reasons for not fully reaping the just rewards from a lifetime of hard work are commonplace and relatable among baby boomer entrepreneurs. CLICK HERE if you’d be interested in becoming part of a Mastermind Group for baby boomer entrepreneurs, which offers an interactive peer forum to build maximum business value and ensure an enriched life beyond your business.