As more Americans reach retirement age, asset management and wealth transfer become increasingly important.
“The largest transfer of wealth in history is now underway, and it is in the form of established operating businesses owned by Baby Boomers,”According to C2C Business Strategies, LLC, this white paper is a business management and consultancy organization that specializes in business transitions.
The next decade will bring many challenges to the baby boomers as well as their transition advisors.
Here are some tips to help you make the most of this transition:
Prep work: Many boomer business owners don’t give much thought to transitioning their businesses. They may not be able to sell it when they want. Financial consultants recommend that a business be prepared for sale within three to five years. As more baby boomers retire, there may be a decrease in business value due to the availability of businesses for sale.
– True value: Business owners surveyed believe that they underestimate the value of their business by basing their estimates on future orders or projections rather than current cash flow.
– Great advice: The skilled transition advisor can guide and direct baby boomers who are looking to sell their business. Advisors are able to help business owners determine a realistic price for their business and devise a selling structure that benefits both the buyers and sellers.
A business advisor, like a realtor who negotiates a sale of a house, will help find the right buyer for the business. They will also work with the seller and buyer until the transaction is completed.
These are tips for business owners that will help you ensure a smooth sale
Good housekeeping means that financial information is always up to date and in order. Once a business-sale transaction has begun, it is crucial to be on time. Don’t delay the process by trying to find information.
– Flexible financing: On average, sellers who are willing to accept financing terms get 86 percent of the asking price. This compares with 70% for those who only accept cash. To maximize sales prices, sellers can have an advisor help them evaluate financing terms.
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