In 1983 we sold a business with sales of $750,000 to a marketing executive by the name of Tom. Tom came back to us in 1990, having increased the company’s sales to $3 million, and told us he was ready to sell. Our Comprehensive Business Analysis revealed a very bright future for his product and business.
We strongly urged Tom to create an advisory board and to do some in-depth research on equipment and his markets, particularly in the United States. He and his advisors then completed a business plan. It indicated to him that the future was indeed quite bright if he changed direction.
Tom returned in 1996 with sales of $7 million. “I am now ready to sell my business,” he said. After we completed a Comprehensive Business Analysis, I asked him, “Tom, when was the last time you had a complete examination physical?” He looked at me strangely. “Why do you ask?” “At your age of sixty, I don’t want to encourage you to keep the business if your health is weakening.”
About four weeks later Tom called me. “My health is very good,” he said. “Now, when can we get together so you can tell me the results of what you’ve learned about my business?” “The results show that there has been a significant shift in the marketplace for your product lines,” I said. “New technology is now available that will make you even more productive and allow you to enter a new market.” Again, he decided to keep his business. I called Tom in 2006. “Perhaps it’s time for us to sit down and talk about you selling your business,” I said. After all, he was now seventy years old. “Perhaps you should now start the process to put your affairs in order,” I added. There was a long pause. “I don’t think you understand,” Tom finally said. “I followed all the advice that you’ve given along the years and the advice of my advisors. I have surrounded myself with good people. I now work only six hours a day and work only three days a week. And I’m in the office for only one of those three days. And furthermore, I now take six months of vacation every year. My sales are $18 million, and I keep almost $2 million. Why would I want to sell my business?”
He went on to say how much he appreciated the help I had given him over the years and that he wanted me to know I was named in his will. I became quite excited when I heard that. Then Tom explained that his will instructed his executor to call our firm to sell the business when he passed on.