However, transitioning a business is a challenging and frustrating process when done without professional guidance. According to the 2020 Pepperdine University Capital Markets Report, the following statistics exist for small to midsized privately held companies:
- 93% of small to midsized businesses go to market and never sell.
- Out of the 7% that do sell their business, 4% of them sell with major sellers’ concessions that are not noted on transactional databases that are used to derive industry multiples.
- This means that only 3% of small to midsized private companies in the U.S. go to market and sell for the value that they wanted to sell for.
Why is this the case?
The discount rate associated with the value of these small to midsized businesses is very high because of the risk associated with these businesses.
How can Diligentiam help?
Our goal with this process is to help business owners understand the value drivers of their business while at the same time ready them for the process of selling their business.
Diligentiam has a combination of the following: 1) consultants who have worked with companies to transition their company, 2) certified business valuators, and software specifically designed to help companies reduce their company risk, keep their company out of the due diligence slaughterhouse, and increase their salability.
At the same time that Diligenitam is working with you to raise the value and salability of your business, we will also utilize our tax strategies sister company Alternate Tax Solutions, to explore strategies to reduce the taxes you will pay on the sale of your business.
How to Get Started:
The first step is to contact us and schedule a call or meeting to discuss the goals of your transition to see if working with us can help you meet those goals.