A Pivotal Distinction: Sold vs. Bought Businesses

For the vast majority of founders, exiting a business is a once in their life kind of thing, which emphasises the need to get it right. An exit is often the single largest financial opportunity of most founders' lives.

In the interesting marketplace of business acquisitions, lies a fascinating dichotomy - the 'Sold' and the 'Bought'.

This distinction is not merely a matter of semantics, but a testament to the fundamental shift in power dynamics and outcomes.

Sold Companies: These are businesses where founders, having diligently prepared for a sale, command the reins of negotiation. The seller dictates the terms, leveraging their achievements, financial health, and strategic position. They possess the prerogative to set the price, choose the suitor, and ensure a legacy-aligned transition. It's akin to crafting a symphony - orchestrating the exit on one's own terms.

Bought Companies: Conversely, businesses that are 'Bought' are subjected to the buyer's terms. They hold the sceptre of decision-making, wielding it to assess value on their terms, structure the deal, and chart the future course. The buyer's lens can be a tough one for the founder to look through.

The crux lies in this power shift.

Sellers crystallize their legacy, while buyers hold the reins and see things through a vastly different lens.

This dual lens situation highlights the need for meticulous preparation, negotiation acumen, and unwavering commitment to one's objectives.

So, whether you're at the helm of a 'To be Sold' or 'To Be Bought' business, remember that each side of the coin tells a distinct tale of entrepreneurship, where the outcome is determined by who holds the reins of power.

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