"The sale of a small privately held business is a critical component of the Small Business Life Cycle. The SBLC contains four phases, 1) the startup, 2) growth, 3) maturity, and 4) exit strategy. It is this fourth and final phase of that SBLC that we will be concerned with in this article. And it is important to note, as the author Steve Covey did some years ago, "that we should begin with the end in mind". ("The 7 Habits of Highly Effective People" by Steve Covey). As it applies to an exit strategy, this is the time when an entrepreneur or business owner has reached the point where he/she wishes to retire and realize the rewards of a career in managing a business for profit. And following Covey's advice, we have to be thinking about Phase 4, the exit strategy, from the very beginning of the business. Since there is no established market for privately held small businesses, it is necessary for the seller to establish the value of the business through the four sources of value we present below. The variables are"
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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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