Recently, the media in New England reported the "retirement sale" for a company that had been in business for 235 years. Sadly, the firm's owners were closing the business because they could not find someone to buy the company.
"Timing is a key component in the ability to sell a business for maximum value," said Terry Johnson, Chief Revenue and Strategy Officer here at Generational Equity.
"A business forced into closing its doors may have had much greater value if it had been positioned for sale by a professional at the right time. Timing is everything, and I've never met a business owner that regretted starting the process too early."
Johnson added, "Too many people wait to begin the exit planning process until they are forced due to failing health, industry upheaval, and a myriad of other unforeseen circumstances. The degree of difficulty increases exponentially in these situations, and the net result is often unfavorable."
What makes an optimal time to sell?
"A business must be buyer ready in order to take advantage of positive timing conditions," noted Johnson. "This means following the multi-step process that Generational Equity directs for all of our clients."
One key step is creating professional documentation that demonstrates the buyer readiness of the company. Because of this, having an experienced Exit Planning and M&A advisor by your side is vital.
"A proper exit plan is not something that is done overnight," said Johnson. "A business owner should initiate the process far in advance of their target exit date.”
“For millions of baby boomer business owners now reaching retirement age, selling at the right time may be the difference between long-term financial struggles versus a comfortable retirement. The stakes are high, and my advice to business owners is to start the process early.
Contact us today for more information on how CORE Strategic Business Solutions can help you be better prepared to Exit Your Business on your time table, for the value that you want and need and to the successor of your choice.