Dawn Drozd, Small Business Expert / Author / Speaker / Founder of ClearVision, Inc
Almost eight million Baby Boomers are expected to exit their businesses in the next few years as they reach retirement age. Unfortunately, they may not fare well for three reasons:
- The sheer volume of businesses for sale is expected to cause downward price pressures.
- Statistics show that, even with good market conditions only 2 in every 10 owners will complete a successful sales transaction. The rest will sell off in pieces or simply shut down.
- And finally, many boomer owners have failed to establish retirement accounts, instead investing a large percentage of their profits back into the company.
- Employee Ownership – This model can help keep your business locally-owned and managed. It also provides your hard-working employees and/or management team with a great opportunity. If your teams and locality are important to you and your business’ reputation, this can be a rewarding choice in the long-run.
- Get Acquired – Acquisition can greatly benefit you and the business that acquires yours, especially if your business can help the buyer’s break into a new market or increase their own valuation. To make the most profit from an acquisition, those buyers will be your sweet spot; the big fish might not be willing to pay as much.
- Sell Your Assets – Asset buyers are looking to buy your physical equipment, facilities, customer lists, trademarks, and the business’ reputation. This option is more appealing to buyers, who don’t assume legal responsibility for the business, than to most sellers because if the business is sued, you could still be liable even after you sell.
- Sell Your Stock – Selling your stock tends to be the better option. Instead of selling only your assets, you’re selling the entire company, legal responsibility, and all. However, it could be harder to find a stock purchaser if your business is on the smaller side. You could also consider an employee stock-ownership plan.
- See more at: http://clearvision.us.com/whats-business-worth/#sthash.s1CWHsTZ.dpuf