Millions of Baby Boomers have already made the move to retirement with many more following closely behind. If you’re part of the Baby Boomer generation and the 16.5 percent still in the workforce, it may be time to look forward to your own retirement and take the steps to secure your financial situation, so you can make the most of your golden years
Begin the Process Early
Learning when and how to sell your business can have an enormous impact on the health of your retirement. That’s why it’s important to begin the selling process as early as possible, so you can prepare your company to fetch the best available acquisition cost, allow time to connect with the right pool of potential buyers and undertake the steps necessary to use the sales’ proceeds to empower your financial future.
Survey Your Company from Both External and Internal Perspectives
Positioning your company for sale is the first step to consider. That begins with a thorough look from both the outside in and the inside out.
Let’s look from the outside first. How does your company position within its niche or market? What is the outside perception of how you conduct business and the reception of the products or services you sell?
Now, look again from the inside. How well organized are your financial, organizational and operational documents? If you sold your business tomorrow, how easily could all of that transfer to the new owners to ensure no hiccups during the turnover process? Look honestly at all internal and external deficiencies you find and work to address them before beginning the sales process.
Find the Right Buyers
Next, it’s time to target the right group of possible buyers or investors. Ask yourself:
- Would a competitor or similar organization nearby benefit from acquiring your business to add on to their own?
- Do the products or services you offer complement another organization’s offerings in a way that would make purchasing your company the next logical choice in their expansion?
- Closer to home, do you have family or friends primed to become investors in or future operators of your company upon your retirement?
When you target well-positioned investors or buyers, you can often work to sell your business in a faster time frame and for a price in line with the true value of the company.
And if you’re not sure where to start in your search for buyers, don’t worry. Twelve31 Advisors has a network of buyers/investors that could be a match for your company.
Ensure the Business Sale Helps Secure Your Retirement
We work with you ensure you get the best possible price for your business. Continue working with other professionals after the sale to leverage that windfall to support ongoing retirement. Just some of the options you might consider include:
- Investing a portion of those proceeds in a vehicle like an annuity that pays out at a set rate over time
- Investing in a mix of opportunities with varying risk levels to maximize your earnings in retirement
- Investing in your local area, such as real estate opportunities or by become an angel investor in local concerns that pay higher rates of return
With a strengthening economy and continued business strength, now is the perfect time to begin the process of selling your organization and enjoying your retirement as a Baby Boomer. Proceed methodically and you will be well on your way to realizing your dreams.