Kenny Rogers sung one of my favorite songs of all time. My siblings still will just start singing it sometimes, especially when playing cards. It's a poker song but it applies to any gamble really. Selling too early or too late can be a gamble. Best to learn from someone who knows thw ins and puts of the he game. I just spoke to a buddy tonight who just carried his omma and grampa and now the in-laws are showing signs. I suggested we work on a succession plan now , before they need it in hurray. He likes that.

The vast majority of business owners would love to see someone in the family to take the business over and run it successfully for generations. This is the most commonly imagined path to business succession (aka Plan 1) and sometimes it works great depending on the family members. I know of a number of 1st generation successes like this, but it is a small number, definitely not the number one way business owners DO pass on their businesses. In fact less than 30% of all businesses are ever passes down to 2nd generational family (in US and Canada), 12% to 3rd and less than 4% to the 4th generation due to many factors, one of which is lack of planning. The 2nd Path) Sale to a third party This method involves selling the business to an external buyer, such as a strategic buyer (a competitor) or a financial buyer (a private equity firm). It is often the preferred option for maximizing financial return and making a clean break from the business. How likely is it? - Low probability of success: Data indicates that only 30% of businesses GET LISTED for sale and only 18% of those actually find a buyer and successfully close the deal (that's 5.4% of all businesses) Many owners are disappointed by the outcome, whether due to a lack of offers, low valuations, or other challenges in the sales process. - Best for: Businesses with a strong track record of profitability, defensible market position, clear growth potential, and a management team that can operate independently of the owner. Many businesses again fail here due to poor representation and Lack of Planning. Plan 3) Close the doors and Liquidate. Sounds easy and safe to some, and Sadly it's THE MOST COMMON, and has MASSIVE DOWNSIDE for the owners and the community. The data shows that liquidation of community based business are not just bad for the seller but pose an agregated threat to every community they leave behind; For the owners liquidation provides: Downsides of liquidation for owners - Lowest financial return: Liquidation involves selling assets individually, which usually yields a far lower value than selling a business as a going concern. Goodwill, brand value, and other intangible assets are lost. Owners who sell to a successor can often receive significantly more, even through a structured buyout or installment plan. - Minimal funds: After paying creditors, the remaining proceeds for the owner may be minimal or non-existent. In a worst-case scenario, if the business is insolvent and the owner has provided personal guarantees, they may be held personally liable for debts. - Loss of legacy: For owners who have dedicated their lives to building a business, liquidation erases their life's work. Passing the business to a successor preserves the legacy, name, and mission they worked to create. - Reputational damage: Liquidating can damage an owner's professional reputation, making it more difficult to start a new venture in the same industry. - Loss of control: The liquidation process puts control in the hands of a liquidator, removing all decision-making power from the owner. 

Even if you do not plan to exit your business "anytime soon" you still need to plan because no one knows what the future holds, but we do know that no plan is a bad idea. Health issues, both ours and the health of ones close to us can pop up suddenly, so can many other unforeseen emergencies that can put us on the defensive and need to pivot quickly. If we are not ready with a plan, then desperation will quickly be felt, and desperation has never made a good bargain.