Retirement continues to be the lead as the number one reason for selling a company according to the Q3 2018 Market Pulse Survey Report (52% for companies valued at $1M-$2M, and 56% for those valued at $2M-$5M), https://azbusinessforsale.com/market-pulse-2018-q3/ .
It is critical that Business Owners take a proactive approach when preparing for their exit strategy because a business often represents up to 70% percent of the owner’s overall wealth. Owners who succeed in years of hard work will not only financially benefit them on a personal level, but they will have more wealth to pass on to their families.
Business owners who sold their business for $2M to $5M preplanned at twice the rate of business owners selling in the $1M to $2M range according to the Market Pulse Survey Report. Proactive planning is important and the better prepared an owner is, the better results they will experience. Yet studies show that 60% of business owners who did not preplan were unable to sell their business for their expected value, bringing truth to the adage those who fail to plan, plan to fail.
To start planning, determine how much money you will need to receive for your business to be able to live the life you want afterward. Think about these questions: What do I have now, and what do I need? Most people do not have their “number” figured out, but with a little work, you can get there quickly. Get some professional help from a wealth manager or financial planner to fine-tune that number. If you don’t already have assistance with planning for your future, I have a cache of Referral Partners. I can recommend two of three people to assist you with finding the right person to fill the need and design you and exit strategy of when to exit and how much will you need.
We are here to help when you need to determine the marketability and approximate value of your business. For more information, please contact Linda at firstname.lastname@example.org / 480-648-8940.