As a boomer age business owner, selling or transitioning your company is likely top of mind. The story you're telling yourself and your trusted advisors may sound like this: "I know I have to do something ... it's so much work...timing isn't right...my children will take over...l have a partner" etc.
Your future, and the well being of many other people, depends on the steps you take over the next few years. You know you need to do something now or it might be too late. Protecting what you have built and positioning for the future are the priorities. The clock is ticking, ready or not.
If you don't move forward, the decision will be made for you. Health, the economy, competition or industry changes will dictate what happens next. At that point all bets are off. You've lost control and you didn't get into your own business just so you could give up control.
Don't fall into the unrealistic timing trap. It will likely take 5 years from start to finish to be fully out of the business. You need to find a buyer, do the deal and then transition.
Sometimes it can be done in less time if the circumstances require but typically it is a longer term proposition. At this point you don't know and it would be wise to prepare for the worst.
Right now you may not know exactly what you'll do after the business is sold. It's ok, that's part of the journey. You didn't have all the answers when you started or took over the company either.
Likely 80% of your wealth is tied up in your single largest asset - the business. Most owners tend to have inflated opinions on the value of their company. Wouldn't it be more prudent to find out the real story.
The biggest sale you will ever make will be the business itself. You'll need assistance to maximize the value of the company before you go to market. Operations, Finance, Sales and Marketing are good places to start.
Take your first step today and find out what your business might be worth.
- Over 75% of Canadian small and medium business owners plan to sell within the next 10 years.
- As the baby-boomer generation rapidly approaches retirement, less than 10% of Canadian small and medium business owners have a formal exit or succession plan in place.
- Over 82% of Canadian small and medium business owners expect the sale of their business to fund their retirement.
- Over 55% of Canadian small and medium business owners are having difficulty finding a suitable buyer who can even finance the purchase.
- Over 67% of Canadian small and medium business owners are over 50 years of age.