“It was the best of times, it was the worst of times …” The first sentence in Charles Dickens’ A Tale of Two Cities is how many small business and privately held company owners are feeling right now. After a decade of low interest rates and generally good business conditions, we are now entering a period where the economic and business environment is much more challenging. I don’t need to get into the details of the long period of the pandemic, supply chain problems, inflation, and higher interest rates in this article. You all know very well how these factors have impacted you and your businesses.
For many business owners, it is estimated that as much as 80 to 90 percent of their net worth is tied up in the value of their company. So now is the time for those owners to get organized and begin the planning process necessary to grow their companies, increase the value of the business and make the final push for an exit at the highest possible price. Typically, this process will take about three to five years, so you need to get started sooner rather than later.