Baby boomers with successful businesses are retiring in large numbers.
As Business.com explains, the 79 million Baby Boomers born between 1946 and 1964 comprise the largest generation in U.S. history, and this group has created thousands of profitable businesses over time.
Many baby boomers don’t have an exit plan or a business succession plan, and this issue can have a huge financial impact on a potential sale. These owners need an expert who can guide them through a successful business sale.
Raincatcher provides business broker expertise to help baby boomers sell a business in less time, and for an attractive price. Their focus is on helping small business owners achieve the American dream.
If you’re a baby boomer who is interested in selling your business, read on.
Issues for Baby Boomer Owners
Your business may represent the majority of your net worth, and you may need the business sale proceeds to help fund retirement.
Many baby boomer owners, however, face a number of obstacles that make selling the business more difficult.
The success of your business may depend heavily on the owner’s involvement. Many owners have the customer relationships and provide the expertise that generates business. It may be hard to customers to envision doing business with your company once you’re gone.
Many business owners avoid discussing a succession plan, because owners don’t want to think about retirement, or their own death of possible disability. If there’s no succession plan in place, how will your company continue to grow sales and profits if you’re no longer involved? Companies with succession plans know where they’re headed, and these firms are more attractive to potential buyers.
Baby boomer companies may not invest in the latest technologies used by younger competitors. If the owner has grown the business using outdated technology, that owner may not feel the need to make changes. To compete in the marketplace and do more business in less time, however, all companies need to invest in better technology.
Finally, an exit plan allows the owner to sell the business in less time, reduce the tax liabilities on the sale, and to avoid potential legal issues. An exit plan addresses many tax and legal issues that can slow down or even prevent a sale.
Why Baby Boomer Companies Are Attractive
Businesses created by baby boomers can be extremely attractive to potential buyers.
These firms may have an existing customer base that generates repeat business, and well-established companies have good brand awareness in the marketplace.
If a business uses a proven business method, the company can produce a track record of sales and profits. A potential buyer can use the same systems to produce good results after a purchase. These firms are managed by seasoned entrepreneurs, with time-tested operations, and some thrive in niche markets.
Perhaps most attractive, some firms carry little or no debt, which gives a buyer more financial flexibility after a purchase.
If your business has any of these traits, a business broker can help you sell your firm for an attractive price.
How Raincatcher Help Sellers Find Buyers
Raincatcher can serve as your trusted advisor who can work with you through the entire sales process.
An experienced business broker understands your motivations for selling, and can help address potential obstacles to a sale.
Finding a buyer is half the battle, and Raincatcher has an extensive, diverse, and active buyer network. They can pre-screen potential buyers, and find those who have a strong interest and can obtain financing for the purchase
Your broker can determine a reasonable sale price for your company. Brokers use metrics to determine the business price, and analyze the sales of similar companies, as well as current industry trends. The broker negotiates final price on your behalf.
Raincatcher provides business brokerage, mergers and acquisitions services, and they have a team of experienced professionals who can help your sale. Finally, your broker can assist with laws, regulations, permits, and licenses to help the transaction to go smoothly.
Closing a Sale
Closing your sale can be complex, and Raincatcher can help you get your sale across the finish line. Your broker will determine if a buyer can pre-qualify for financing, and manage the due diligence process once your find a qualified buyer.
Your business sale can take several forms. You may sell your entire firm through an equity purchase, or sell specific company assets to the buyer. In addition, the purchaser may want the owner to stay during a transition, or simply buy the firm and take over without assistance.
Work with your business broker to determine the exact form of your business sale, and how the form impacts the ultimate price your receive for your business.
Find an Expert
Your business sale may be the most important financial transaction you’ll ever complete, and you need a trusted advisor to guide you through the entire process. Raincatcher can serve as the advisor who can close your business sale for an attractive price, and help you reach your financial dreams.