Owner dependency isn’t about hours. It’s about decisions.

An owner working two days a week can still be the single biggest reason a buyer discounts the business, and the reason usually has nothing to do with workload.

By Steve 5 min read
Abstract bridge artwork for Owner dependency isn’t about hours. It’s about decisions.

An owner who has worked their way down to two or three days a week tends to assume the dependency problem has been dealt with. The business runs. Holidays happen. Nothing burns down. Then a buyer, or an investor, or a bank looks at the same business and prices in a discount for key-person risk anyway, and the owner cannot see what they are looking at. What they are looking at is not hours. It is decisions. The question a buyer is answering is not how much does this person…

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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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