Unknown Business Value
According to many business surveys, approximately 85% of business owners do not know the value of their largest asset, their business. This was also the case for the owner of a manufacturer who was counting on the proceeds from the sale of the business to fund his retirement.
Over the years, he had a gut feeling that the business was worth $8M but had no documentation backing up that figure. The owner was beginning to feel burnt out but continued on as usual because $8M did not fund his retirement goals. He thought that if he worked a few more years that he could put more money away from his salary and get closer to the number he needed to retire.
As the burnt out feeling became harder to ignore, the business owner spoke with his Financial Advisor and CPA to see if they could make any suggestions. Both trusted advisors recommended he call Blue Sky.
How Blue Sky Helped
Blue Sky sat down with the business owner and his trusted advisors to learn about the situation and owner's goals for the business and retirement. After analyzing the business and current market conditions the B&MSG showed that the business was worth $2M more than the owner's gut feeling.
The $10M valuation of the business satisfied the owner's retirement goals and allowed him to confidently make the decision to sell the business.