Last week, Bloomerboomer.com published my article on this this subject.
Bloomerboomer.com provides advice on a variety of subjects to baby boomers who are nearing retirement. They asked me to provide some tips to business owners planning for their retirement (and a sale of their company) in five years.
While you can see the article for all the details, here are the highlights:
1. Institutionalize Your Company’s Management Team: Business owners need to move away from the day to day operation of their companies. To maximize value, put a management team in place that can continue past your retirement.
2. Upgrade Your Company’s Financials: Make sure that your financials are in great shape. Think about having your financials reviewed (or even audited) by a CPA firm.
3. Talk to an Estate Planner: Plan, plan, plan. You can create a lot of value for yourself and your family if you do some tax and estate planning well in advance. You won’t be able to have the same effectiveness at the time of a sale.
4. Remove Risk: Buyers hate risk. Do what you can to start locking down risky issues – long term contracts, leases, etc.
5. Talk to an M&A Advisor: Once again, plan, plan, plan. It is great to be able to work with business owners well in advance of a sale. I can provide a lot of value by focusing on key points that a buyer will care about well in advance of a transaction. It is harder to make significant changes at the time of a sale.Share: