Baby Boomer Transitions – Selling Your BusinessOn June 25, 2021 by Susan
As a baby boomer, you may be at the point that you are considering the next phase of your life. The media repeatedly report that baby boomers are redefining aging and retirement. That is not surprising. Baby boomers have redefined virtually every stage and aspect of American life throughout the years. Swimming in uncharted waters can be a frightening thought. However, the prospect of starting a new chapter of our lives, with new opportunities and challenges, can be tremendously exciting.
Segueing from where you are now to where you want to be takes significant thought and planning. That may involve transferring your business to a third-party buyer. If so, your key goal is probably to maximize the value that you receive and, through wise legal and tax planning, are able to keep.
It is important to take strategic steps, well in advance of sale, to prepare your business for the sale and to maximize its value. You should identify problem areas and implement changes that will gradually and positively impact your business over the next three to five years. The increased revenue and profit will generate a higher value for your business. In addition, the value and marketability of your business will be enhanced by the sustainable positive trend over the prior three to five years.
Taking some simple financial and operational steps may enhance your credibility, facilitate a sale and increase the value of your business.
Some steps to consider include:
- Changing your mindset. As a small business owner focusing on continuing operations, your mindset may be to decrease profit, thereby decreasing taxes. In preparing for selling your business, your mindset should be to increase revenue and profit, as the value is typically a multiple of revenue or profit.
- Developing your brand through marketing and an effective, optimized web presence.
- Refining and institutionalizing your business methods and systems. If you are the only one who knows how to run your business and has the relationship with your customers and vendors, it will be difficult to transfer your business to a buyer.
- Negotiating and documenting the terms of your arrangements with key vendors and suppliers.
- Protecting key trademarks, domain names and other intellectual property.
- Practicing good stewardship. Clean up your financial books and records.
© Susan E. Wells PLLC 2021 • This article may be considered advertising under applicable state laws. • This article is intended for informational purposes only and does not constitute legal advice or establish and attorney/client relationship.
Susan E. Wells