At least a third of businesses put on the market never sell. Not good news if you are counting on proceeds from selling your business as financial security for retirement.
A savvy purchaser will perform a very thorough review of your company during the purchasing process. This will reveal any risks associated with your business. If significant risks are noted, you may still sell, but probably for a much lower price. It also increases the chance you won’t be able to sell at all.
At a minimum, reduce your risks by:
1) Having your financial house in order.
2) Documenting key processes and procedures.
3) Diversifying your customer base.
4) Finding ways to increase revenue and profit.
As you address these risks, keep in mind the baby boomer population is reaching retirement age. Quickly. More businesses on the market means your business may be harder to sell. This is a harsh but undeniable truth. However, by investing time and effort, you may greatly increase the value of your company.
And the potential result? More cash and greater financial security.