59 min
Goldilocks & The 3 Buyers: Interview with Dan Scherotter, Filament Business Advisors Catalytic Conversations
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- Business
Picture this - you’ve worked for years to build your business. You hope to retire in the next five or six years. You will use the money from that sale to buy the family a relaxing cruise, invest some for retirement and finally, do what you want to do with your time.
Sounds lovely, doesn’t it? Unfortunately, for many who hold that dream dear, it doesn’t work out that way. It happens for a lot of reasons. Sometimes, the market conditions aren’t right. At other times, owners get in their own way.
Today you have the chance to get the insider view of the transaction at the point of choosing the best fit buyer. Dan Scherotter, a broker and strategy consultant with Filament Business Advisors, has a background in the restaurant industry.
Dan is a former chef and restaurant owner. Dan has a finger on the pulse of the restaurant industry. As a consultant and broker for Filament, Dan is going to discuss with me the unique aspects of selling a restaurant, asymmetrical buyers and how the past year has “laid the industry bare” structurally.
First, you need to sit down and define your priorities. What do I mean?
Do you know what your financial outlook is?
Can you afford to take an earn out or reinvest part of the proceeds of a sale?
What are the tax implications of the sale for you personally?
Many owners don’t know what they actually need to realize from the sale of their business. Sounds crazy, doesn’t it? But, it’s true. I recently heard of an owner who thought (no data, just thought it) that he/she needed to walk away with $3M to be comfortable in retirement. As it turns out, $2M was the magic number and that business sold and the owner was able to take an earn out for a larger purchase price based on forecasted earnings.
Think about your other priorities:
You want the company to stay in your town.
You want the new owner to keep all of the employees for at least a year.
You want to continue acting as part of the business development team.
You want a seat on the Board.
These requests are reasonable if they are presented in a professional manner and the owner has created a strong position as a valuable company. The likelihood of those priorities being accepted depend on the value of the company, and the timing of the ask. This is another incident where the right advisor is critical.
Let us know what you think: Wendy Dickinson, Ascend Coaching Solutions, 804-372-7575, wendy@ascendcoachingsolutions.com; Dan Scherotter, Filament Business Advisors, 804-728-1553 dan@filamentbusinessadvisors.com
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Send in a voice message: https://podcasters.spotify.com/pod/show/ascendcoachingsolutions/message
Picture this - you’ve worked for years to build your business. You hope to retire in the next five or six years. You will use the money from that sale to buy the family a relaxing cruise, invest some for retirement and finally, do what you want to do with your time.
Sounds lovely, doesn’t it? Unfortunately, for many who hold that dream dear, it doesn’t work out that way. It happens for a lot of reasons. Sometimes, the market conditions aren’t right. At other times, owners get in their own way.
Today you have the chance to get the insider view of the transaction at the point of choosing the best fit buyer. Dan Scherotter, a broker and strategy consultant with Filament Business Advisors, has a background in the restaurant industry.
Dan is a former chef and restaurant owner. Dan has a finger on the pulse of the restaurant industry. As a consultant and broker for Filament, Dan is going to discuss with me the unique aspects of selling a restaurant, asymmetrical buyers and how the past year has “laid the industry bare” structurally.
First, you need to sit down and define your priorities. What do I mean?
Do you know what your financial outlook is?
Can you afford to take an earn out or reinvest part of the proceeds of a sale?
What are the tax implications of the sale for you personally?
Many owners don’t know what they actually need to realize from the sale of their business. Sounds crazy, doesn’t it? But, it’s true. I recently heard of an owner who thought (no data, just thought it) that he/she needed to walk away with $3M to be comfortable in retirement. As it turns out, $2M was the magic number and that business sold and the owner was able to take an earn out for a larger purchase price based on forecasted earnings.
Think about your other priorities:
You want the company to stay in your town.
You want the new owner to keep all of the employees for at least a year.
You want to continue acting as part of the business development team.
You want a seat on the Board.
These requests are reasonable if they are presented in a professional manner and the owner has created a strong position as a valuable company. The likelihood of those priorities being accepted depend on the value of the company, and the timing of the ask. This is another incident where the right advisor is critical.
Let us know what you think: Wendy Dickinson, Ascend Coaching Solutions, 804-372-7575, wendy@ascendcoachingsolutions.com; Dan Scherotter, Filament Business Advisors, 804-728-1553 dan@filamentbusinessadvisors.com
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Send in a voice message: https://podcasters.spotify.com/pod/show/ascendcoachingsolutions/message
59 min