Obtaining a business valuation (B.V.) today for your company facilitates an earlier and wealthier retirement. A Gallup poll evaluating small-business owners and retirement reveals some critical findings. According to the findings, 47% of company owners plan to retire only when forced to due to health reasons. The Gallup poll offers another staggering statistic. Nearly 33% of business owners are relying on their perceived value of their company when it comes time to sell as a significant portion of their retirement income.
What these results indicate is multifaceted. First, an overwhelming number of small-business owners will be retiring later in life, worrying they will not have enough retirement income to sustain their retirement. They also worry about the future value of their organization in order to fund their retirement. Companies offer enough challenges in short-term and long-term sustainability to need to worry over the future value of your company. Obtaining a (B.V.) today can successfully offer a business owner clarity and accuracy in the value of their business now, so that internal operations and strategies can be evaluated for the future benefit of the company.
Completing a (B.V.) today offers immediate piece of mind and a concrete objective tool to properly prepare to retire, retire earlier on your timing, and to make the necessary changes now to prepare for a more lucrative ultimate sale of your business. A (B.V.) places the business owner in a power position rather than being at the mercy of health concerns or other potentially damaging factors dictating the time and price of sale. Because the average business sale takes 12 to 18 months, this is of particular importance for small-business owners.
Co-founder and partner in Synergy Business Services, Barbara Taylor, offers advice to small-businesses in The New York Times business blog titled “You’re the Boss.” Ms. Taylor outlines simple yet effective actions and steps small-business owners must implement now to prepare for retirement.
The most important recommended action item is to obtain a (B.V.) on your company immediately. She states the valuation is an invaluable tool to increase the value of your business early, thus attracting more prospective buyers when the business is ultimately for sale.
Another recommendation in preparing for retirement and the ultimate sale of your business is to start reducing the role the business owner plays in daily operations. A (B.V.) will accurately highlight the strengths and weaknesses of the company, allowing the owner to begin acquiring the right management team to transition operations and management for the overall success and profitability of the company.
Lastly, understand the different exit options for your business, including a merger, sale, or transition of the business to a family member. Your (B.V.) will assist in evaluating the best exit strategy for your company. Obtaining a business valuation today will facilitate an earlier and more successful retirement.
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