What Do I Need to Know About Selling My Business Before I Can Retire?
Did you know that the average U.S. small business owner is 60 years old? If you are like many business owners, you are nearing retirement age and starting to think about your future. You may be thinking about selling your business sooner rather than later because you have concerns about the effects of COVID-19 or because you simply do not want to continue investing so much time and energy into the business. Whatever your reason, choosing to sell your business and retire is a major decision. It is important to define clear objectives, properly prepare for the sale, and take steps to avoid mistakes that could delay your retirement.
Preparing Your Business for Sale
As the old saying goes, failing to prepare is preparing to fail. Although you may be eager to sell your business so that you can pursue your retirement dreams, it is important not to rush this important transition. One of the most essential steps you will need to take is to secure an accurate business valuation. Properly valuing your business may be complicated – especially if the business’s revenue is down because of COVID lockdowns. A qualified business valuation professional will help you determine how to put an appropriate price on the business. You have probably poured a tremendous amount of your time and energy into growing your business. You deserve to get the best price possible.
Define Your Personal Goals
Are you willing to accept a partial sale or are you determined to pursue a full sale? In some situations, it may make financial sense to sell key assets instead of the entire business. What are your personal goals? Are you intent on selling within the next few years or are you willing to put off the sale for another five or 10 years? Before you can develop a strategy for selling it, you need to honestly evaluate your own wants and needs. Some business owners are willing to wait for favorable market conditions before selling while others are more interested in selling by a particular date.
Identify and Resolve Any Problems that Could Disrupt the Sale
Your business likely has areas that need work. Just as you would put a new coat of paint on a home before selling it, cleaning up any problems within your business is key to preparing the business for sale. Is your employee policy outdated? Do you have any outstanding litigation? These potential risk factors can scare potential buyers away. If these issues cannot be fixed, you may need to adjust your asking price accordingly. An experienced business law attorney can be a valuable source of insight and assistance during this process.
Contact a Stamford, CT Business Law Attorney
As a business owner, you have likely worked hard for many years and you may be thinking about retirement. Selling your business can have significant financial and legal implications. For dependable legal guidance, contact the Law Offices of Peter V. Lathouris, LLC. Call our office today to schedule a free initial consultation with an experienced Fairfield County business lawyer.