Too many small business owners, including mortgage brokers, are walking away with nothing when they sell their livelihoods, says Pavuk Legal executive principal, Andrew Pavuk.
Pavuk, who’s recently published a book on the subject entitled Nobody Else’s Business, says he first noticed the problem seven years ago while out for a walk and noticing a highly successful local business had closed down.
“I remember…walking down the main road where I live and asking ‘why has this good business just closed?’ When I asked around, I found out the guy couldn’t sell his business – but he’d only had it on the market for six months! He hadn’t built it up to have it ready to transfer to a new owner. It prompted me to think maybe a lot of businesses aren’t prepared for when the owner is ready to move on.”
Pavuk says many brokers fall into a similar trap, either by not doing their homework before taking on new mortgage books or by failing to prepare for when they’re ready to sell or step away from the business.