In preparation for retirement, many business owners struggle with the decision of when the appropriate time is to begin to explore the sales process and get their business in order. Business owners who are considering retirement within the next 12 to 18 months should start preparing the business for sale. There has been a higher volume of mature companies coming to the sales market, as baby boomers are getting close to retirement age and want to sell their companies. With the median sale price at the highest point in over a decade, now is a great time for those considering selling their business to explore options. The current trend suggests that buyer competition for quality deals is still intense, while placing upward pressure on business valuations.
Valuations help determine the sale or market value of a business taking a multitude of factors into account, such as profits and losses, current payroll and lease obligations, as well as other related figures. To arrive at a fair market value, an experienced, licensed brokerage firm like CIBB can provide a business valuation and help navigate the challenging financial landscape of the selling process. It has been an exciting few years for the small business transaction market and with indicators suggesting there is no sign of slowing down, a business valuation can be an excellent investment. Economic forecasts suggest that acquisitions of privately-held companies will increase significantly through 2019.
If you are contemplating retirement soon or just exploring your long-term options, it’s never too early to prepare. A business owner should be informed on the emotional aspects to anticipate, as well as educated on the numerous tactical complexities of the business sale process. This will position the business on a level playing field with buyers and increase the odds of a successful sale. Many business owners find that retiring is more difficult than they thought it would be. They have invested a lot of time into the business and are emotionally invested in its product. Finding a great buyer allows the business to continue to grow and flourish. A business broker can be very worthwhile in this capacity to ensure a business owner gets the best prospects and most qualified buyers for his or her business.
Superior Business Region
Recent census data is highly encouraging for the southwest Gulf coast of Florida. The region from Sarasota County to Collier County is among the ten fastest growing areas in the country. The Cape Coral, Fort Myers and Naples metropolitan area has grown by roughly 17% since 2010, with North Port, Sarasota and Bradenton closely following at a rate of over 12%. It is currently a seller’s market, but the marketplace is changing and the next several years are trending to be a buyer’s market. Only those business owners who take the time to evaluate their companies and properly prepare will reap the rewards. Preparing yourself and your business now will increase your odds of a successful sale when the time comes.
Let us know how we can help! Contact us today at (239) 936-1718.