Planning To Retire? Here’s How To Get Ready For A Retirement Sale

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Retirement Sales

Retirement. For a lot of business owners, this is the finish line. A grand victory, an impossible goal and a fresh start – all wrapped up in one. For most, this also means a retirement sale – finding the perfect buyer to carry your business forward. So how can you get your business ready for your retirement? This is a question we here at Daltons are asked frequently, and we’re here to help! The below tips should see your well on your way to a smooth transition

Know your Value

This is possibly cheating, because it’s good advice for a business at any stage. But getting a clear and comprehensive valuation of your business is doubly important for a retirement sale. For one, how much you can expect to receive in any sale is essential for planning your retirement. Will you be able to spring for all the mod-cons in that campervan you’ve been looking at? Or can you dream even bigger, and get that cosy seaside cottage? Use your business valuation to inform your financial planning with open eyes – and hopefully a comfortable bank balance!

It’s also about an asset even more important in retirement than money – time. Your time is immensely valuable, and an accurate valuation can save you a lot of it. By marketing your business at the right price, you ensure a speedy sale that gets you in that seaside cottage – or onto your next venture – even faster.

So why not take advantage of Daltons excellent Valuation Services? We can pair you up right now with a carefully selected and completely independent agent to start that process today. After all, your time is the most valuable resource you have. In fact, this takes us neatly to the next point of advice…

The Sooner You Start, The Better you Finish

Let’s return to our finish line metaphor. Business ownership is a marathon, and you’re looking ahead to Mile 26. Well, any marathon runner will tell you their preparation for that final stretch started well before then – sound advice for any entrepreneurs considering their photo finish!

The best way to ensure a smooth and successful handover is by getting your business to the strongest position possible. This isn’t just about value – although obviously this will help with that – but it’s about legacy. You’re not looking to sell a house of cards that topples as soon as you let go. You want to pass on a strong foundation from which your business can keep growing with a new owner.

This means, at an organisational level, preparing your business to function without you. Consider your management structure. Ask yourself, is the ship sufficiently skilled without you at the tiller? As the owner, you may have found yourself wearing a lot of different hats that need to be passed on before you leave. And how are your finances? Make sure you settle any outstanding debts and realise any investments to entice new buyers with a robust balance sheet.

The sooner this all starts, the better. Although if you’re ready to retire and haven’t started preparations yet, don’t panic! As the saying goes, if the best time to start is yesterday, the second best time is right now. So get to it!

Watch the Road Ahead

If you’re sufficiently prepared, you can also look ahead for the perfect moment to sell. Look for trigger points that might increase the value of your business at this critical point. These may come internally or externally. A significant piece of new business can attract additional investors. The conclusion of any

leasehold obligations might give a new owner flexibility to move the business. Legislative changes may change the tax outlook for your sale, or even present new opportunities that a hungry new owner might want to jump on.

Timing is everything, but remember to keep your own needs at the front of your mind. After all, these may not be purely financial – what’s the point of squeezing a bit more from the sale if it means putting your new life on hold to run the business a bit longer? The perfect time to sell should first and foremost be dictated by your life plan, not just the business plan.

And so, try to approach a retirement sale – this ‘finish line’ with joy, and excitement for the next part of your life. Selling your business and retiring isn’t the end. The cheque you receive isn’t how you keep score. The destination is not as important as the journey, and what you built along the way. So see this as a new beginning, and who knows? Maybe there’s another race in your future. Many retirees find they want to flex their entrepreneurial muscles, so why not take a look at what’s available here at Daltons.

 

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Planning To Retire? Here’s How To Get Ready For A Retirement Sale