Teaching Your Kids Business Through Your Exit

Welcome back to another edition of The Wise Exit!

 In today's issue, we're covering:

1. Teaching Your Kids Business Through Your Exit

2. Understanding Adjusted EBITDA vs. EBITDA for Valuation

3. The Invisible Assets That Drive Valuation Premiums

Let's dive in!

Teaching Your Kids Business Through Your Exit

Your business exit might be the best education you ever give your children.

As founders, we spend decades building companies and accumulating business wisdom. Yet, when it comes time to sell, we rarely think about how this process could shape our kids' understanding of entrepreneurship.

After helping dozens of founders navigate exits with their families, I've seen just how transformative the experience can be when parents intentionally bring their children along for the journey.

Here are my recommendations:

Start by explaining your decision to sell in age-appropriate terms:

Young children can understand concepts like "seasons of life" and "new adventures," while teens and young adults can grasp more nuanced discussions about market timing and life goals.

 Let them witness parts of the process:

If you have older kids, bring them to meetings with your advisors (with permission). Show them how professionals value a business and what buyers look for. These real-world lessons are more valuable than any class in business school.

 Share the emotional journey:

Letting your children see both your excitement and your grief normalizes the complex feelings that come with entrepreneurship.

 Most importantly, involve them in planning what comes next:

Whether it's investing the proceeds, starting a new venture, or creating a family foundation, this transition offers priceless lessons about wealth, purpose, and legacy.

Your exit isn't just the end of your business story – it could be the beginning of your family's entrepreneurial legacy.

Featured Blog 📰

Understanding Adjusted EBITDA vs. EBITDA for Valuation

Choosing between EBITDA and adjusted EBITDA can significantly impact your business valuation.

Our latest blog breaks down which metric works best depending on different selling scenarios.

 We cover:

• The fundamental differences between these two critical valuation metrics

• When to use EBITDA versus adjusted EBITDA in your exit strategy

• Which metric buyers prefer during their evaluation process

• How to calculate both correctly and maximize your valuation

Check out "Understanding Adjusted EBITDA vs. EBITDA for Valuation" on our blog to learn which approach best fits your exit strategy.

M&A Tips from Brian Dukes 💡

Most founders think a business valuation is only about revenue and profit.

But it's not.

Because truth is, buyers don't just evaluate what shows up on your P&L. They also weigh the intangibles.

And in a lot of cases, it's these "invisible" assets that drive the biggest valuation premiums.

Here are 4 things buyers quietly study during diligence that can dramatically impact what your business is worth:

Read the full post on LinkedIn.

That's all for this week!

Just remember, your business is an opportunity to create a lasting impact through the lessons you share and the legacy you build with your family.

Best,

Brian Dukes