The value an expert brings is worth tenfold the cost
“Why do I need to hire an M&A consultant when I am ready to sell my business? It seems like an extra expense that will cut into my proceeds from the sale.”
Even if a potential client doesn’t ask me this question directly, many clients seem to think it. So, here’s a classic story that illustrates why hiring a professional with the right expertise saves money, time, and headaches.
Knowing Where to Tap
As it was about to leave port, the cargo ship’s engine failed. Onboard, 8,500 cars were loaded and ready to set sail. If they arrived late, the penalty would be thousands of dollars for every hour delayed, plus untold thousands of dollars in extra departure port fees.
Everyone dropped what they were doing to help. Engineers, mechanics, and operations experts put their heads together, but no one could figure out what to do.
Days passed while the penalty clock ticked. Finally, the owner heard about an old man who had been fixing ships since he was a youngster. “Get him,” the owner ordered. “Bring him here immediately!”
The old man arrived. He carried a small bag of tools and immediately went to work in the huge engine room.
He carefully inspected everything from top to bottom. His hand hovered here and there. When he touched one area, he cocked his head and then nodded. He reached into his tool bag and pulled out a small hammer. He gave a firm and confident tap.
The engine roared to life. Everyone shouted with relief. With the problem solved, the old man calmly put away his hammer and left the ship.
A week later, the ship’s owner received an invoice from the old man for $10,000. “Ten thousand dollars!?” the owner exclaimed, “He hardly did a thing. I need an itemized bill!”
The old man responded with the following:
ITEM 1. Tapping with a hammer………………………..$2
ITEM 2. Knowing where to tap…………………….$9,998
Moral of the story?
Expertise has value worth paying for.
Call Me
Selling your business is one of the biggest financial transactions of your life. No matter how successful you are as an entrepreneur, the business-sale process is complex and fraught with emotional landmines.
Trust me. Yes, I have been involved with many successful deals, but I have also seen business owners who choose to go at it alone make needless and costly errors in judgment. In some cases, potentially good deals fall apart because the owner isn’t prepared for the process.
If you are thinking about selling your business within the next few years, call me (561-543-2323) for a candid, confidential conversation about your objectives. In addition to explaining what you can expect during the sales process, I can recommend experts who can help grow your business, develop an objective valuation, or plan for a rewarding life after the sale.