What sellers often miss
Many owners believe the transaction is the finish line. In reality, it is often the starting line for an entirely new chapter of financial decision-making. The skills that made you a successful entrepreneur are not necessarily the same skills required to manage significant liquidity. Without a well-defined plan, even successful exits can produce disappointing long-term outcomes.
The takeaway
Do not evaluate your transaction based on enterprise value, purchase price, or even net proceeds at closing. Evaluate it based on the long-term financial security, flexibility, and opportunities it creates for you and your family. Wealth creation is important. Wealth preservation is essential.
Illustrative, not your deal. Where the book uses dollar figures, they are there to show how something works, not to describe your business. Your banker, your accountant, and your attorney will put real numbers to your own situation. Full note.
Terms this chapter uses
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