The NY Times tackles a very important topic for today’s business owner:  what to do when partners want to split.  A buy-sell agreement protects all owners in a business for events when a minority, majority or equal owner decides or is forced to leave a business.  In most cases, a buy-sell agreement will include a provision for determining “fair market value” via a credible third-party business valuation.

Serial entrepreneur Mike Doernberg used this saying in a business owners workshop and it has always stuck with me.  In particular, he used this phrase as it relates to start-up business owners who have reached a point of no return and are about to “cross the chasm”.  Either sell your business (run from the lion) at this juncture, or bear down for the next 3-5 years to really refine & develop the business (chase the naked lady).

If you own a business and are thinking about selling, it is important you recognize the value of a defined plan & strategy and the value of professional advisors.  An article featured on Financial Post summarizes a recent study of business owners who sold their business within the past 5 years (more than 100 business owners were surveyed about selling and what they would recommend to other business owners following their own personal experiences):