It could be called the holy grail of entrepreneurship: selling your company and retiring without worry. Yet in a recent PricewaterhouseCoopers study, 75% of owners who sold regretted their decision a year later, and only 5% were happy with their net proceeds.1
A year after selling their businesses:
- 75% regretted the decision
- 25% didn’t regret the decision
- 5% were happy with the net proceeds
Why the regret? In our experience, many business owners start exploring their options when they are referred to a lawyer, investment banker or other subject-matter expert whose expertise typically lies in one specific area. That can create the classic “when you’re a hammer, everything looks like a nail” problem, and it can limit your options instead of expanding them.
Developing a sound exit strategy is even more complex in a family business: only about 30% of these companies survive to the next generation and only 13% live to 60 years.2 Consider these dilemmas: