Baby boomers – is it time to sell your business?

If, like me, you are one of the baby boomer generation you’re probably at the stage in your business career when you are beginning to think of the future and what that may hold financially.

Hardly a day seems to go by when we don’t hear stories in the media of the cost of maintaining your lifestyle in your “twilight years”.

For many business owners that will mean trying to maximise the value of the business you have built up over the years.

But what does that really mean to the baby boomers?

Whilst economic confidence has been growing and business opportunities can provide a better albeit riskier return than traditional investments, will the number of businesses for sale actually depress the market?

Recent surveys have provided some startling statistics.

In the UK for example, 44% of business owners expect to exit or sell their business in the next 10 years. In the US it’s been reported that between 35 to 55%, depending on survey, expect to sell their business by 2025. In Canada the number was even higher at a staggering 75%.

Where does that leave business owners looking to exit? For those who have not planned ahead it represents a bleak future.

For the well prepared business though, there are still opportunities to maximise your value. Attached to this article is a link to a growth and profit improvement diagnostic which highlights the areas you should concentrate on to enhance the value of your business.

To highlight this point, the latest private company valuation indexes are showing increased sale multipliers from a year ago, but I believe by paying attention to fundamental areas such as

• Sales and profit growth trend
• Establishing the brand
• Diverse customer base
• Long term contracts
• Established (and documented) processes
• A loyal and enthusiastic workforce

Your value can be increased significantly.

The establishment of a market of potential buyers or investors will provide an opportunity to create a competitive environment for your sale. How many of your competitors for example would love to have your customer base?

Recently I’ve seen a business sold for twice what the owner originally valued the business at, simply because two rivals were desperate for the client databank and forward orders.

The message is clear – plan now for a successful exit – you owe it to yourself! Your first step is to complete this diagnostic:-

Click here

This diagnostic takes less than 10 minutes to complete and you will instantly get an email advising you what your score is for the key issues and some guidance on what you need to do to improve your 3 top issues.