Burr & Forman

12.18.2012   |   Articles

Burr Alert: Step One- Fire Yourself!

Most often the seller of a privately held company is the same person who was the founder and who runs, owns, and brings vast personal knowledge and charisma to the business. That’s YOU. There is a good chance that YOU are the key reason why your company is great, valuable and profitable. But that also means without YOU, the company may be a high risk proposition to a buyer.

If you ever want to sell your company or bring in an investor, you’ve got to focus on these two words: Transferable Value.

Transferable Value is what a buyer owns after the transaction closes. From your point of view, the buyer is going to own a wonderful and very profitable business. From their point of view (which is the only one that counts) they are going to own a business that may be losing a critical asset –YOU. Therefore, painful as it may be, you’ve got to FIRE YOURSELF.

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