Tips for Baby Boomers Selling Their Businesses

I’m sure you know know that Baby Boomers are those folks born between 1946-1964.  You may not that they currently own some 12 million small businesses.

Or that they will put about 368,000 businesses on what is already termed a “buyers market” for businesses.  That is because only about 40% will be sold to a family member.

Historically, baby boomers sold their businesses because of “tax reasons.”  Now, research shows that they would like to sell in order retire.  Proper planning and a good team are essential to meet that goal.  Here are four considerations for baby boomers considering selling their business:

1.  Start now.  Tidy up the physical plant.  Identify key employees.  Understand the metrics that drive your industry.

2.  Build your team.  Depending on your business and goals, you should consult with a wealth manager, tax specialist and an attorney.  A good outsourced CFO can also help you streamline processes and ready the business for market.  Others include merger and acquisition professionals, appraisers, bankers, auditors, IT professionals, and key employees.  Above all, this is true “exit planning” for boomers; so wealth and tax advisors are key.

3.  Identify potential buyers.  According to Jeff Farren, of B2BCFO, Indianapolis, potential targets include competitors, entrepreneurs seeking a business or financial opportunity, management, family, employee stock ownership plans, private equity and even “going public.”

4.  Use a process.  Your advisory team can manage the process; which allows you to focus on building the value of the business.

Baby boomer owned companies have deeply and meaningfully contributed to the fabric of this nation.  With proper planning and execution, those businesses can continue to thrive, leaving lasting legacies to their founders and positive impact on their communities.

The law factory turns one tomorrow.  Thanks to all of you who’ve supported us this year!

Be Courageous and Strong in 2014.  

Best–

Chris

About Chris McGrath

I’m a Carmel, Indiana business attorney providing business counsel, commercial litigation and mediation services based on over 20 years of experience. My firm is founded on a principle of supporting others’ advancement and achievement, and my core values are service, passion, faith & loyalty.Chris McGrath’s Google+ Profile