Preparing for Selling your Business and Retirement

Business owners are truly committed to their businesses. As a result, it is very difficult for them to step away even when they approach retirement age. It is not uncommon for business owners to keep working into their golden years. But the truth of the matter is that at some point almost every business owner will need to embrace retirement and sell their business whether it is for health issues, moving to a new location, or simply for greater peace of mind.

If you find yourself in this situation, it could feel overwhelming. After all, most people have not sold a business before. As a result, they are not clear on what the process is and don’t know where to begin or who to contact. Every business owner should be thinking about the eventual sale of their business because this future event should determine many of your current activities and decisions. 

Let’s take a look at some things you can do well in advance to increase the probability of selling your business. 

Automate Processes

When prospective buyers look at your business, they will want to be able to easily envision it operating smoothly without you involved. Because a good portion of business owners are so integral to the functioning of their businesses, it can be difficult for them to figure out how to decouple themselves from operations. In some cases, this process can take a significant amount of time. 

Now is a good time to consider this issue and what you can do to make sure your business can function without you. Give some thought to who at your organization could be a second in command or manager. When a buyer sees that a competent and knowledgeable employee will be staying on to assist them, it can go a long way in allaying any concerns. 

Put Yourself in the Buyer’s Shoes

This is extremely important for sellers to understand. Imagine you were buying your business. What kinds of issues might be of concern to you? There is a high chance these will be the same issues that could concern potential buyers. Once you have identified any areas of weakness, you can start to zero in on figuring out how to handle them. Buyers will pay for a quality business that has current systems in place and offer much less if they need to put things in place.

First and foremost, you will want your buyer to feel confident that there will be a smooth transition and that they can almost immediately begin to profit from their purchase of your business. Anything that you can do to help ensure that is true will benefit the sales process. 

Business Brokers and M&A Advisors are experts in the world of buying and selling businesses. They will help you to properly evaluate your business and look for these areas of weakness to increase your chances of a successful transaction.