Mine is the generation talked about so much for their impact, caused by our great numbers. This group’s just-starting mass retirement, including the sale or transfer of businesses is upon us. Business brokers are talking about it. Consultants are seeking ways to capitalize on it.
It is possible that this will become a buyer’s market, an environment with more businesses on the market than business buyers.
What therefore can business owners do to help ensure a successful transfer? There are three must-dos:
First, plan when and how you would like to transition the business. There are so many considerations. These can include to whom you want to transition the business, your personal financial plan, the condition of the business related to finances and operations, and your person interest in timing of transition and what your next life segment should look like. Without advance planning, you may find you are behind a proper schedule and not able to maximize your financial gain and wellbeing.
Second, make certain the business is as right as possible. In a buyer’s market having a best business on the market is critical. This means financial, net-to-owner, consistency at a minimum. Preferably this is with consistent or growing revenue and well-managed expenses. Have contracts in order, including leases. Fire sales will not be sought after as finding good, strong businesses will be easier.
Third, don’t price your business too high, be at market rate for similarly sized, financially strong, and operationally sound. Yes, to some degree people may be willing to pay a bit of a premium for the best on the market but, remember, it will be a buyer’s market.
Now is the time to be ready.
See this article about the same: Boomers