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

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Succession and exit strategy planning can seem daunting and overwhelming, but it doesn’t have to be. Many believe that starting a succession plan means you will eventually sign on the dotted line and all but evaporate from the remaining business. While some sellers do want immediate 100% removal from their company at the point of sale, many choose options that facilitate a slower transition that is easier for the company left behind and for the company founder. Previous owners have been known to get hired on as part-time consultants, retain a portion of stock in the company, or participate in business functions and events. Business owners can sell your business now, maintain a portion of equity in it, and continue working for another five years. If the tide turns, walk away without suffering a huge loss. The truth is that if planned accordingly, owners can decide how they want to go about moving on and starting the retirement they worked so hard to achieve.

“The first step in exit planning is to find an advisor who is highly experienced in working with business owners”, says Lakes Business Group’s Joe Braier. “Do your due diligence and find a reputable mergers and acquisitions advisor who understands business valuation, deal structure, and the overall process of bringing a business to the open market.  The right advisor will be willing to meet with you face-to-face, review your business, and discuss your vision for the company’s future and goals for the sale.” The M&A advisor will then conduct a full appraisal of the business which will include looking at the business’s financial past, so business owners need to have their financial documents in order.   Next, the advisor develops a plan to package the business and begin marketing it in a confidential manner.  The M&A team handles inquisitions, screens and vets potential buyers, and only sets up meetings between the business owner and qualified, serious, prospective buyers.