sell

The Importance of Preparing to Sell the Family Business - An Interview with Terry Monroe

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welcome to two questions a TV I'm Susan

Barrentine emo joining me today is

Tarrant Monroe he's the founder and

president of American business brokers

and advisors he's also the author of

this book selling with certainty

straightforward advice for cashing in on

the full value of your business hi Terry

welcome to the show thank you great to

be here I'm so glad to have you on the

show I'm so interested to talk to you

I am personally and professionally

intrigued with family business I grew up

in a family business I sold my shares in

a different family business now I own a

different family business and I've done

a fair amount of study in this area and

I'm just always so fascinated by the

fact that such a high percentage of

business owners don't have an exit or

succession plan why do you think that is

well I think it is Susan because I think

they all think they're gonna live

forever

men are more guilty of this and what I

think ladies are because we think we're

in visible we're gonna live forever so

we don't want to think about that stuff

that's it's just you know that's not on

the forefront of our mind at all

and what happens is you know things

happen in life which I cover in the book

and then all of a sudden you're the

light bulb comes on but generally I

think that's probably the big question

right here we try to avoid we're in

denial

yes well okay so I've noticed that with

family business owners they do tend to

wait too long to sell and the market

shifts or the value drops but the but

but sometimes they just wait and and

then it's a little difficult to sell so

how can we help

family business owners not wait so long

excellent question because that was the

whole idea the reason I read the book

was to help educate people on this and

not make the mistakes that I made and

all a lot of my clients of me yeah they

need to know that there are some

benchmarks and there's some reasons

there's a couple reasons if you're

healthy and you're thinking about

someday you're gonna sell it the

question I always get is when is the

best time to sell a business you need to

do but not what is doing bad when the

business is trending every year and it's

getting better and better and better

that's the best time sell when the

markets good what concerns me is what

happens is people will have a

significant life impact the event we all

have it's okay yeah but something will

happen and and I sort of said I tell

people I work in the deep business which

I don't really like doing it which is

death disease doors partnership

disillusion disruption I called the

dismal Dedes in the book yeah and that's

a little eyeball becomes on Susan says I

need to do something I need what do I do

who do I call and that's that

procrastination factor that's came into

play all that time yeah we can just get

them to look forward a little bit and I

always talk about if I could get a hold

of a family business you know two three

four years ahead of a time just have a

conversation I'm an advisor in that

manner just advice it so they know they

have a headline site so it's a it's so

funny because we've talked on this show

with with others who said this very

similar things like oh my gosh stop

waiting and it's I think it's hard for

them because so many business owners

that I talk to are like yeah I don't I

don't want to retire yet and I'm I'm

going okay look this isn't about

retiring this is about really insuring

because the reality is we're all gonna

die and you know nobody likes to think

about that but but at some point

something happens where you either

choose to not run your business anymore

or life chooses for you and none of us

knows when those things are gonna happen

and that makes it feel a little bit like

insurance where you're building an

insurance policy to preview but you

wouldn't you know if you said hey would

you like to risk your

your business if something happens to

you like no one would say sure it's

crazy it's crazy it totally is and

here's the thing even a business owner

needs to ask himself it's small family

business generally the largest thing and

what they're finding interesting you

know new at the bank and to fill out a

financial statement ok and you list how

much money you have in the bank if you

got any CDs if you got real estate yeah

and if there is this person they will

list value of their business ok

generally that is going to be the

largest one asset on the entire

financial state yet they don't treat it

with the respect they should know you

can insurance like you said herbs you

got insurance for your house if we house

friends now what happens if something

happens to your business they don't

think about it and all this is you did a

very good job explaining it's just

insurance

mm-hm know what's been the business will

be sold either by you your relatives

your heirs

somebody's gonna sell it one these days

but most people they're not oh they

think they're gonna live forever and

ever we're gonna come by yeah it's gonna

be a love fest well I like in the book

where you you I think have a really good

idea to practice selling the business by

taking a vacation and I really thought

that that was a really good idea because

it's you know and and I think about this

from from the perspective of being an

executive coach I think about ok you

have you're gonna have challenges as you

make this transition as you make the

decisions to let go the family business

you're going to have challenges as you

think about creating the next chapter of

your life they're gonna be some

emotional things that are gonna happen

and a lot of people aren't prepared for

that and I think practicing it by going

on a really nice vacation is a good idea

is that something you've put into

practice with your clients absolutely

when I interview my clients of course

they call me and I I thought when I got

in

businesses and I thought it would be all

numbers you know I'm good at having a

piece of cake and what I found how it

was just the opposite I am more of a

psychiatrist than I am a numbers person

because it's so emotional and the first

thing I ask them is what are you gonna

do actually sell the business and if

they go I don't know then I I start

talking to when I first started selling

businesses years ago I was down in

Florida and in Florida nobody thinks

that people have real lives down they

think everything is about the mouse oh

yeah and these would sell their

businesses or retire from up north and

he moved to Florida and after about six

months of living at home their wife

would tell him if you don't go get a job

or buy this is I'm gonna kill you

because and that's what I discovered

that they they didn't know what they

wanted to do and they thought that they

wanted to do this and so they went then

at that point they went and bought

themselves a job so I backed into this

yeah there's nothing wrong with buyers

no but I backed into it and then

interview guys and they said well if I

can get this price also that's not

that's not the right reason yeah what

are you gonna do well I'm gonna travel

I'm gonna do this

look what why don't you do a trial run

yep if you think you want to fish and

you want to travel take off for a month

and see if you get the heebie-jeebies or

you know you can handle it you test run

yeah you buy a pair of shoes you try

them out I mean this isn't rocket

science yeah well it isn't it isn't

right because when you're in it

sometimes you can't see like when you're

in the picture as a part of the picture

you can't see the frame and you can't

see what else is really in the picture

so I think I think I've always felt

there's a good case for coaching as a

partner in in selling the business

because so many people who sell their

businesses just really struggle with

that emotional piece and the the clarity

of what's their next step but I think

you summed up beautifully in the book

you know the book is

definitely a great read for people who

have a family business and are thinking

you know maybe at some point someday I

know there are a lot of people who just

want to work themselves into the grave

but at some point maybe you might like

to do something else or you know spend

time with your family or whatever so I

think the books are great but Terry

where can folks find you oh you can find

it at Amazon or Barnes & Noble or any

way where books are sold or you can go

to my website Terry Munroe comm it's on

there too

it's available do your point about that

Susan they they don't want to test that

out and try that you know what's going

on here

and you it's going to happen they're

going to women get out of business

eventually and my babies were they they

don't want to be blindsided that's why

I'm trying to bring good point so often

the people get blindsided there is a

process to this it's not like selling

your house or selling a car because what

I've sold so many things no there's a

business as a living breathing entity

it's like trying to get your hands right

Jill yeah changes every you know the

business that you have today is in the

business you had last year and it's not

gonna be next year yes so that's why

there's a process and people go there's

a process absolutely Jerry thank you so

much for being on the show today I've

really enjoyed it

Susan thank you for inviting me I really

enjoyed talking to you too okay viewers

here's the book if you own a family

business you need to get this book

whether you're thinking about selling

right now or not educate yourself

understand the process it's all in here

okay

we're gonna have links down below so you

can get your copy thanks for watching

we'll see you next time

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