Not necessarily. Acquisitions often include additional purchase price – known as an “earnout” – paid to sellers if the acquired business grows in the future, meaning you may still capture all of the value created by your growing business. Careful thought should also be given to the state of debt markets – if those markets tighten in the future, holding onto your business as acquisition capital becomes less available might hurt the value of your business more than the value created by the growth you’re expecting.
If an earnout or other type of contingent value program might motivate you to sell your business in the near term, please contact us. We’re happy to discuss what we’re seeing in the market and what sort of opportunities you should expect to be able to negotiate with a potential acquiror.