| It would likely be a safe statement to state that | | | | trend. |
| most small and medium-sized businesses in | | | | If you can try to attract a few more customers |
| Canada are owned by the baby boomer | | | | or build some efficiencies into the business in |
| generation. As the years move on, a large | | | | order to show annual improvement, this would be |
| number of the business owners will be looking to | | | | helpful. |
| retire. Selling a business remains a vital resource | | | | Talk to professionals |
| for retirement for many boomers so it is | | | | Consult with a professional accountant or tax |
| important to start planning early on how to | | | | advisor to determine a company structure that |
| achieve the most value for a business. This article | | | | can maximize your value when you sell. You must |
| will examine some aspects of selling a business in | | | | also have professionally prepared financial |
| order to facilitate a retirement. | | | | statements ready for the sale. Consult with a |
| Start early | | | | business broker to determine business selling |
| Too often, people do not plan 12 to 24 months in | | | | process and what you can expect. You may also |
| advance of listing their business for sale. It is, | | | | want to meet with a business valuator to |
| however, that this level of planning occur. Too | | | | determine if a formal valuation is required (in most |
| often, business owners simply call up a business | | | | cases, a business broker can also assist you with |
| broker and expect that it will be simple to find a | | | | this). |
| buyer. The reality is that it may take up to 2 | | | | Make a transition easier for the new buyer |
| years to get your business ready for a sale then | | | | Pretend that you are buyer with little or minimal |
| an additional year to find a buyer for it and close | | | | experience in the industry. Try to set things up so |
| the transaction. Prepare yourself for this potential | | | | that it will be easier to transition the business. |
| timeline. | | | | Have a depth of trained staff and properly |
| Try to improve business results | | | | documented operating procedures. |
| This obviously may seem easier said than done | | | | Prepare yourself |
| but it is an important point. Most buyers of | | | | If you have spent years building a business you |
| existing businesses are not as risk averse as | | | | must be personally ready for the sale of it. Seller's |
| people willing to try a start-up venture. People | | | | remorse is a very real thing that happens more |
| looking to buy an existing business are looking for | | | | often than people realize. It is one thing to state |
| an existing stream of cash flow, steady | | | | that you are ready to sell your business but when |
| operations, a history of success and reasonable | | | | the time comes to truly let go, many people get |
| assurances of future success. Because of this, it | | | | cold feet. Take an honest personal assessment to |
| is difficult to sell a business where the results are | | | | determine if you really are ready. Selling a |
| in decline. Show buyers that things are on the | | | | business is a tremendous amount of work so you |
| upswing and that they need to continue with the | | | | want be to sure if it is the right decision for you. |