The Sage of Omaha on why people want to sell businesses to him
Couldn’t resist repeating the latest comments from Warren Buffett about the reasons people want to sell their businesses to him and his Berkshire Hathaway investment vehicle.
“Think of the business as a work of art. You can sell it to Berkshire, and we’ll put it in the Metropolitan Museum - it will have a wing all by itself; it will be there forever.” he said.
“Or, you can sell it to some porn shop operator, and he’ll take the painting and he’ll make the boobs a bit bigger and he’ll stick it in the window and some other guy will come along in a raincoat, and he’ll buy it.”
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July 27th, 2008 at 3:39 pm
Haha, I like the part about the boobs.
Although the emotional attachment that a business owner feels is a very powerful driver when selling, I feel it’s not quite as cut and dried as that.
Yes emotions play a big role, but I think there are a few other things to consider. Telling someone that you sold your business to Warren Buffet certainly generates some social mileage. Maybe it’s got something to do with the fact that an investor as successful as Warren Buffet thought your business worthy of purchase. His statement, although sincere I’m sure, sounds a bit like buttering up to me.
Consider the financial benefits. On a like for like basis Warren Buffet would always be the preferred choice. By selling your business to WB you’d get the money, shares or both in exchange for your beloved venture. You’d also gain an ally in the form of one of the smartest investment strategist in history.
What a great contact to have when you are looking to invest from your newly enlarged bank account.