John Borrowman, CPC
Borrowman Baker, LLC
Your client’s control premium makes his business more valuable. Your control premium makes you more valuable. And your control premium will never be higher than when you are happy where you are.
Thought-leaders liked Pratt/Reilly/Schwiehs long ago wrote that “the owner of a controlling interest in a business enterprise enjoys some very valuable rights that the owner of a non-controlling ownership interest does not enjoy.” But, how does that connect to your career?
The easiest example is to imagine yourself unemployed. Any option that comes your way isn’t really that much of an option. First, you’re not measuring it against something real – as in a job you actually have. You’re only measuring it against what might be, or what could be. Second, you’re in a weak negotiating position. Sure, you can attract opportunities. Do you have the luxury of time to fully consider them, however?
OK, let’s be fair. You’re not unemployed. But, if you’re unhappy enough to be thinking about moving on, are you really that much better off? If you’ve already made the decision to leave, are you any different from the owner who has already decided to sell? Without the alternative to stay where you are, you risk making a bad career choice. You risk making a choice in order to avoid something, rather than to get something.
Your control premium is highest when you are happiest and most content. That’s when you should be having a conversation with a recruiter who specializes in valuation in order to get perspective on the options that you might face at any given point in time. You’ll never be in a better position to make smart and informed choices about your career.