Hiring a Business Coach/Advisor Prior to Selling Makes Sense

Using a business coach can help get your business ready to sell

Hiring a Business Coach/Advisor Prior to Selling Makes Sense

By 2021, Baby Boomers will be retiring at a pace of 11,000 per day.  That is 77 million people or 20% of the US population.  Many of these Boomers are business owners ready to sell.

What that means is the current seller’s market will flip to a buyer’s market.  There will be an over abundance of small businesses fighting to sell their “baby” to outnumbered buyers.

As a business owner, the best way to stand out in this oversaturated crowd is to implement an exit plan with a coach and/or exit advisor.

Currently only 25% of businesses in the US that go to market actually sell.  That means 75% don’t sell for a variety of reasons.  By 2021 I anticipate 25% may be closer to 20%.

My most successful (and quickest) M&A transactions have been with businesses that have been coached.  A coach/advisor will work with a business owner in areas such as reducing customer concentration, aligning a management team, preparing a model that is not reliant on the owner and ensuring the financials are presentable.

Many business owners have most of their net worth tied up in their businesses, waiting for the big windfall when they sell.  A prudent owner will act now to get their house in order with a coach/advisor so when they are ready to sell, they will realize a positive outcome.  A wise investment now will see significant returns in the future.

This article was written by Sam Thompson. Sam is the president and owner of Transitions In Business, a Minnesota based M&A firm that specializes in selling healthcare, business to business, transportation, manufacturing, distribution and IT companies. Sam is a Certified Business Intermediary who has successfully guided countless business owners through the sale or merger of their company. Prior to becoming an intermediary, Sam was a successful CEO and business owner for 29 years before selling his $16 million business.