Every price over £25,000 crosses the owner’s desk. That’s the discount.

A business that runs fine while the owner is on holiday can still be priced as owner-dependent: the test a buyer applies is a different one.

By Steve 5 min read
Abstract bridge artwork for Every price over £25,000 crosses the owner’s desk. That’s the discount.

The two-week holiday is the test most owners set themselves. Nothing broke, nobody rang, the invoices went out. The conclusion drawn is that the business is transferable. It is a reasonable test of one thing and a poor test of another. Operations continued because operations are largely repetition, and repetition survives absence. What a buyer, a lender, or an incoming managing director is looking for is different: which decisions stopped, and how long the queue was on the Monday morning of return. If pricing above a threshold, hiring, credit terms…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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