There is a number being subtracted from your business right now.
It is not in your accounts.
Your accountant has never mentioned it, and your bookkeeper cannot see it, and it appears on no statement you have ever signed.
Yet on the day you sell, it is usually the single largest reduction in what you actually get paid.
Nobody writes it down, because the people doing the subtracting never itemise it.
They simply pay you less and move on.
You can have two businesses selling at the same time in the same industry, with nearly identical revenue, margins, profits, and market segement.
Yet one of them will walk away with roughly a third more money than the other.
Why?
Well nothing in their accounts will explain it.
If you lined the two up on paper, you would struggle to tell them apart.
So where did a third of the value go?
We’ll talk about that tomorrow.
IN the meantime, if you haven’t already, check out the shift that will change how you view your business and can make the difference in how it pays you – today and tomorrow.
It takes 5 minutes. View it here.
Cheers,
George
Two businesses with the same profit, in the same industry, can sell for very different amounts, sometimes a third apart. The reason is not in the accounts. Buyers do not only pay for profit, they pay for how safely that profit will keep arriving once they take over. A business that leans heavily on its owner or a handful of customers looks riskier, so buyers quietly apply a larger discount to the price. Appraisers call this company specific risk, and it is often the single largest reduction between the asking price and the cheque that clears. Two owners with identical numbers can walk away with very different paydays, and the gap comes down to how risky each business looks to the buyer.