Now’s the Best Time to Sell a Business and Retire, but Many Baby Boomers Are Waiting

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Reason aside, letting go of a company a business owner has grown from a dream into a successful operation that investors want is no easy task. A lot of pride has gone into this investment. It may seem unimaginable for the owner to go into their office one day planning to leave and never return. After decades of pouring heart, soul, blood, sweat, and tears into their business, it may seem easier to keep working until they can’t work any longer. The sellers’ advantage and high return rates, however, cannot be guaranteed years down the line. In fact, business brokers and investment advisors agree that the seller’s market has anywhere between one and five years before the market gets saturated with businesses for sale shifting the tide to a buyer’s market.

Buyers markets generate less profitable sales agreements as competition from similar business options keeps prices low. Just like the job market, there will eventually be more baby boomer business owners looking to retire than there will be active buyers.  This will cause valuations to go down.  As the small business owner begins to evaluate their retirement portfolio, those who have their business as their biggest asset may find it difficult to liquidate their intangible asset.  So the overall strategy is becoming more apparent; which is to plan accordingly.  Sharp investors will take advantage of any business that needs to sell when a once active owner is out of the picture.  Business owners need to sit down with their team of expert advisers and evaluate the market and their business to get top value for their lifetime’s work.