As the generation of Baby Boomers approaches retirement, it has been estimated that over the next twenty years retiring business owners with be seeking to successfully exit their businesses, with an aggregate value in the trillions of dollars.
Without the assistance of an experienced M&A advisor and a comprehensive transition plan & process to maximize the value of their business and ultimately their own personal wealth, many of these business owners will typically:
- Exit their companies as a result of pressure from outside circumstances, not as a result of their own desires
- Exit their companies on a timetable that’s forced on them, instead of one that meets their needs
- Undervalue their companies and leave hard earned wealth on the table
- Pay too much in taxes
- Lose control of the process by being reactive rather than proactive
- Fail to realize their business and personal goals
- Suffer unnecessary personal stress
From experience, we recommend that our selling clients begin the process 2-3 years before they believe they will really need to sell the business. While some businesses have sold in as short as six months, the average tends to be closer to a year, with some businesses requiring 2-3 years before finding the right buyer and the right deal. In addition, some business may benefit from making a few changes/improvements to their business to command the best price and terms and it may take from a few months to a year or more to implement those changes.
If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a free, confidential, consultation with us, have them contact me at: firstname.lastname@example.org
By: Mike Ertel, Transworld M&A Advisors