If you’ve been in business for any length of time, you’ve certainly earned your right to a healthy dose of skepticism. Most business owners have endured more than their fair share of eye-glazing, brain-numbing sales pitches and vendor-sponsored events. They’ve been pushed to try numerous products, procedures, and systems; many of which have failed to deliver anything but mediocre results.
That’s why, even though you might be near retirement and more than ready to start the process of selling your business, solutions presented to you that promise a better, more financially lucrative, and less stressful way of doing so might you on the immediate defensive.
“Too good to be true.” “Heard it before.” “If this works so well, then why doesn’t everyone do it this way?” are a few of the familiar, yet understandable, responses that Baby Boomer business owners give when urged to look into alternative selling strategies.
Business owners over 50 are looking to sell their businesses without encountering adverse tax consequences and without having to pay commissions and unnecessary fees. They also want to sell within a more reasonable time frame than is usual and they want the fairest price for the business.
Perhaps most importantly, sellers fear outliving the proceeds from the sale of their businesses and seek a way they can create a lifetime income which they cannot outlive.
These are concerns which, unfortunately, the old school method of selling a business is simply unable to address.
Pre-retiree business owners are slowly coming to grips with the consequences of a huge demographic shift, not just in the United States, but in the entire world.
For many years, there has been a dwindling supply of qualified business buyers. That lack has been exacerbated by the simple fact that the generations following the Baby Boom are getting smaller and smaller.
Unfortunately, the shrinking pool of buyers, coupled with economic uncertainty and tighter credit, has created an untenable situation for boomer sellers.
Increasingly, they are having to make tough choices when it comes to retiring.
Boomer business owners who are not leaving the company to their heirs are often finding themselves:
- Running the business for a lot longer time than they ever planned.
- Selling the business in hurry at a bargain basement price, thus increasing the odds that they will not have enough money to retire comfortably.
- Resorting to using a business broker and having their companies on the marke