14 Nov 3 Exit Strategies When You’re Selling Your Business to Retire
If retirement is looming on the horizon, then it is time to start thinking about and planning for the sale of your business. In fact, the sooner that you begin the process of preparing to sell the better off you will ultimately be.
Far too many business owners encounter a turn of events put them in a situation where they have to put their business on the market. Or they suddenly realize it is time to sell, but they have done little to prepare and end up selling their business for less than it is worth. Don’t let that happen to you. Let’s explore what you can to, starting today, to get your business ready to sell.
Strategy 1-Plan Early
There is no replacement for planning early when it comes to selling your business. The sooner you start working with a business broker, the better off you’ll be. In the end, you’ll likely earn more on your sale and experience less stress and uncertainty during the sale process. As with all endeavors, preparation matters!
You may feel a little confused as to where to start. Make sure you talk to your accountant and get all of your paperwork in order. It is best to let your accountant know that you are planning to sell several years in advance so that he or she can help chart out what you need to do. There can be substantial tax benefits to preparing and planning early.
Strategy 2-Think About Your Workload
Ever feel as though you are “wearing too many hats?” This can be a big problem when it comes time to sell your business. Ideally, you want your business to be as automated as possible; it should be able to function mostly or even completely without you. When your business operates in such a way that you don’t have to be so hands-on, it will be more attractive to prospective buyers.
As part of the process of having your business function without you, it is smart to find an experienced manager who can take over several or even all of your key management responsibilities. You may find that experienced manager from within your organization or you may have to look into a new hire. But either way, finding a manager to handle all or a large percentage of your duties is a must. Buyers will love seeing that there is at least one capable and experienced individual in place who can take on the responsibility of running the business.
Additionally, keep in mind that if you have to stay on during the transition period, then you will be delaying your retirement. This is yet another reason why it is key that you find a manager who can step in to fill your shoes. However, it is also important to remember that some business owners will want the owner to stay on during the transition period regardless.
Strategy 3-Work with a Business Broker
One of the single best moves that any owner can make when selling is to work with a business broker. You’ll gain access to a significant level of business buying and selling expertise as well as the business broker’s list of prospective buyers who are ready and serious.
Ultimately, it is in your best interest to plan ahead for the sale of your business. The greater your preparation the greater your chances of enjoying a stress free sales process and achieving the best sale price possible.
Copyright: Strategic Business Brokers Group