The cyclical nature of the economy can add uncertainty to the timing of an acquisition, or an exit from a business. However, unlike the clarity of an improving economy or the risks inherent in a downturn, buying or selling at a market high creates a unique set of challenges.
Most people will only buy or sell a business once in their life, it’s usually not a process that they understand. Buying or selling a business is very different than real estate transactions or other asset sales: it can take up to 18 months to have a successful closing; valuations can seem subjective; the tax implications can be complicated for both sides of the deal; and the closing documents and supporting schedules can be legally complex.
If your business represents a substantial part of your net worth, and is a key element of your retirement, not only will you’ll need to know the value at a future retirement or exit date, but the value now.
Despite the challenges incumbent with any small business, owning a hospitality business in Maine or New Hampshire can be rewarding both financially and personally. But the truth is, selling a “going concern” hospitality business can be difficult.