In the United States alone, more than 10,000 people retire every day. But, most of those people don’t own their own business.
All they have to worry about is cashing in their retirement plans. But, you have one more big challenge before your final clock out – getting the most money for your business.
But, when is the right time to make the sale?
If your goal is to maximize your payout, you should be less worried about the age you retire and more concerned about finding the right time to exit the marketplace.
The Opportunistic Sale
Do you have a good idea of the age you want to retire? As a business owner, you should have at least narrowed it down to a five year time period if you don’t want to be specific.
That way, you can have a nice long time period to cultivate an opportunistic offer.
If you run your business well and let people in your network know you might be interested in offers, you just might get a high-value offer without putting it on the market. Then, you won’t have to wait around for the right buyer.
When an offer comes along, you may be unsure of whether or not its the best you can get. For that reason, you should have a number in mind.
What amount would it take for you to walk away tomorrow?
Your Ideal Scenario
In an ideal world, the best offer would come along right when you’re ready to sell. But, the real world is about making your own fortune.
While it’s hard to know what buyer will come along, there are a lot of things you can do to increase the value of your business and make a profitable offer more likely.
Business as Usual
Every once in a while a buyer will approach your business with a low-ball offer. This kind of buyer is usually a slick businessman. They’re out to make a deal.
If someone approaches you with a deal that isn’t acceptable to you, don’t be afraid to keep kicking your can down the road.
Many salesmen will try to talk you into selling for less than your business is worth. They might tell you lies about the market and try to make you think that no one else will come along.
Be confident and know that another qualified buyer will be just around the corner. Know your worth and don’t settle.
Running Out the Clock
When you’ve worked hard to build your business from the ground up, you know every bit of sweat equity that has gone into it.
You’ve given up time with your family, skipped vacations, and put your health on the back burner to prioritize your business.
But just because you think your business is worth a lot of money, doesn’t mean that’s going to translate into an offer when you want to sell.
If you’ve run out the clock and need to sell your business as soon as possible, you need to figure out what is the lowest offer you would take.
You also need to find a broker who can advise you on the decisions you make going forward so that you can maintain the largest profit margin possible. Whether it’s crunch time and you’re ready to sell your business, or you’re looking to put together a long term exit plan, contact us at Dolan Sales today.
I enjoy the efforts you have put in this, appreciate it for all the great posts.
Thank you. Bob