Business sale: It's just easier not too

Today's baby boomer entrepreneur typically has allowed, or forced, his or her business to become the central part of their lifestyle. The business is all too often a part of the family making it very challenging to ever let go. Most of us started the business with a passion and a desire to enhance our income and our net worth. Pretty soon the business can become the mirror we use to measure ourselves. We take significant financial risk and work long hours and do not prioritize the ultimate reward of converting all that hard work into a safe and secure pile of cash.

Retirement is still the No. 1 driver for a business sale, followed closely by the death of the owner. Living longer does create an overall concern about out living one's savings, which then can lead to holding on to long, often way to long.

And it's definitely not a lack of buyers. The market today is very crowded with private and corporate investors with plenty of money looking for opportunities. With too few good quality businesses available for purchase, prices have never been higher for a good solid business.

Businesses with a good team in place, including a healthy and passionate owner(s), will command more attention and more value. Therefore, starting the process sooner rather than later is a very wise move.

An effective way to move in the right direction is to consider a partial sale where ownership can put some money aside for family security while taking in a financial partner who can provide support and help continue the business success.

This can put less dependence on the future sale of the business while you transition the business responsibilities in a responsible way protecting the value of the business.

The Great Recession crushed the value of many closely held businesses so having a strong financial partner can make a big difference in survival and recovery.

Certainly the new administration indicates they will do all they can to make America great again but I am not sure it's a slam dunk our businesses will survive and thrive during the process.

Business owners are usually more confident in their own performance rather than depending on the stock market. It's a big factor in why we started our own business in the first place. Having some diversity in your investments is always a good idea. And no matter what your spouse has said, he or she would rather have some quality years together after the sale of the business.

Leave some value for the next owner and enjoy some of the rewards before time runs short. The kids and grandkids can create their own wealth and it's much more fun to enjoy your rewards with the family while you are healthy enough.

With sale multiples at historically high levels, it's a great time to revisit your goals and put a new plan in place. Cash is king and there are plenty of buyers with the cash and resources to help you to secure your financial future and maybe a little more work/life balance.

A high quality business with a strong and passionate owner will always be attractive and worthy of a premium price. Do not become one of the unfortunate owners that let their kids enjoy the rewards of all that hard work because you kept the business too long. Of course, it will always be easier not to sell and let the problem go to your spouse or children. Don't be that guy or girl.

• Eric Lundstrom is president of Focus Capital Advisors in Downers Grove. Contact him at ELundstrom@fcateam.com