Full disclosure, the title of this blog post is a direct quote from the business guru Peter Drucker. Like most things Drucker, it is brilliant and compelling in its profound simplicity.
No matter what you are selling or buying, technology, cars, insurance or your business, this statement holds up. Buyer and seller alike, what will motivate and be important to you will be your own sense of the value you received.
I was recently meeting with a business owner discussing his goals in preparing to sell his business. When I asked what mattered most to him, he answered, “I have always tried to do the things I do in my business and life as well as I can, and selling my business should be no different. I want to think about everything and be properly prepared to do it the right way.” Bravo, I told him!
A big part of doing it right when selling your business is clarifying the value of the elements of what you are selling. Establishing the businesses value beyond sales, revenue and profit dollars so the buyer may better understand, trust and align that value with what they will be paying.
Using exit planning words or parlance, we call this creating “high transferable value.” The idea is very well explained in this educational video from NAVIX founder Patrick Ungashick. Enjoy!