Some businesses have been built around individuals and as they age, priorities change. The next generation may be reluctant to continue in the business or may lack the skills to manage and grow the business. And in some circumstances, there may be no heir apparent in the management ranks and a decision has to be taken on whether the captain stays with the ship or looks for a strategic exit.

And as we have never seen a situation whereby an owner offers the business at a fair market value and its value is always overstated and sometimes significantly over valued. These conversations can be hard and sometimes potential buyers will walk even though the deal they propose is fair and reasonable. Which begs the question, what value do you put on your time and energy and even frustration, when you force a buyer to walk away because the price you are asking is unreasonable and then you have to start the process again? Everything has a cost and the opportunity cost you impose on yourself may be greater than the price you finally extract for your business. The clear anecdote is when someone trying to sell a house asks a price that is well above the market. If buyers do not engage, then there is a clear opportunity cost because if the seller met the market they would receive a fair market value and then use their capital to generate further income and/or return on their capital. By walking away the ego may be salved, although it may have an unintended (and undesirable) financial cost.