Many business owners retirement plans are to sell their business when they have the urge to retire and then live off the proceeds. They may be in for an unpleasant surprise when they are want to sell if they haven’t prepared their business for sale. It can take much longer than expected to close a sale. Nationally, only 20% of businesses listed for sale actually sell!
Many experts recommend that the owners of small firms begin preparing their business for sale three to five years prior to the planned sale. A business valuation identifies risk and value drivers; as well as, improvements that may need to be made to ensure that the business is salable.
A business valuation is the first step, and an ongoing integral part, of exit strategy planning. The valuation provides the owner with a realistic understanding of the value of his/her business, enabling him/her to make informed decisions such as when it is the right time to sell the business.
