When it’s time to cash in

Three years ago, Don, the 65-year-old owner of a clothing wholesale importing business in Melbourne’s south-western suburbs, decided to sell it and retire to Queensland’s Sunshine Coast. He had worked hard for three decades building up the business – $12 million in annual revenue and consistent profits of $800,000 a year. Don was not greedy but, given the work he had put into his business, he was hoping to get more than $4 million from the sale, representing five times annual earnings.

However, he got a shock when, after a long sales campaign, the best offer was $1.6 million (two