Succession Planning Archives - CT Acquisitions

Owner Dependency: The Hidden Threat to Business Value

Owner dependency and business value the uncomfortable truth

Owner Dependency: The Hidden Threat to Business Value Quick Answer Owner dependency typically costs 3x to 4x in valuation multiples compared to founder-independent firms that sell for 7x to 8x yearly profits. Buyers apply a 10% to 25% key-person discount when a founder remains central to operations, viewing the company as a single point of […]

How to Sell Your Business When You Have No Clear Successor

selling a business with no CEO successor

How to Sell Your Business When You Have No Clear Successor Quick Answer When you lack a clear successor, selling your business to an outside buyer is typically the best option to maximize value and ensure continuity. The absence of internal leadership succession can initially concern buyers, but working with an M&A advisor to document […]

Selling Your Business in Your 40s or 50s — What to Consider First

selling a business in your 40s or 50s

Selling Your Business in Your 40s or 50s — What to Consider First Quick Answer Selling your business in your 40s or 50s requires balancing personal motivations like retirement or health concerns with financial realities, typically involving a business valuation that represents 10 to 15 years of future earnings potential for a profitable company. Key […]

Exit Planning for Private Business Owners — What You Should Be Doing Now

exit planning for private business owners

Exit Planning for Private Business Owners — What You Should Be Doing Now Quick Answer Exit planning for private business owners involves developing a comprehensive strategy now that addresses business valuation, tax implications, succession options (sale, family transfer, or management buyout), and timeline for transition. Starting early allows you to maximize business value, minimize tax […]