The two-week holiday went fine. The buyer prices the six-month absence.

Nothing broke while the owner was away: which tells you less about transferable value than most owners assume, and almost nothing a buyer would credit.

By Steve 5 min read
Abstract bridge artwork for The two-week holiday went fine. The buyer prices the six-month absence.

A common piece of reassurance among owners approaching a sale is the holiday test: two weeks away, phone mostly off, and the business ran. No fires, no crisis calls, revenue landed. The conclusion drawn is that the business no longer depends on its owner. Buyers and lenders reach a different conclusion from the same evidence, because they are not asking whether the business survives a fortnight. They are asking whether the earnings stream survives the permanent removal of the person who currently makes the decisions that matter most and least…

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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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