By : Kandace Heller
Selling your business in order to retire can be a major change in ones life. You likely have taken many years to build your business and have it become a reputable name. However, when it’s time to retire and move on, then it’s often best to sell the business in order to get the financial reward that you have been waiting so long for. Here are some tips to remember when selling your business to assure that you do so as smoothly as possible.
Sell When It’s Right
The first thing to remember is to not force it. There are going to be a lot of factors that go into you selling your business. For example, make sure that the market is right and that you will get the right amount of money for your business. Also, make sure that you are personally feeling that it is the right time to sell your business and that you won’t have any regrets in the future. In order to avoid the pressure of having to sell because you want to retire sooner than later, be sure you plan in advance so that you can have plenty of options to sell when it’s right and time to move on.
Properly Evaluate Your Business
Another important factor to consider when selling the business is giving it a proper evaluation of how much it’s worth. While some people may have lofty perceptions of how much their business is worth, you are likely to get a better evaluation by looking at past financial records. In doing so, you’ll have better leverage when pitching your business to prospective buyers.
If you’ve never sold a business before, consider getting help to assist you with the process. A professional valuator or business broker can help set you up with prospective buyers who are in the market to buy a new business. They also do this on a regular basis, so they’ll know all of the information needed to help make the transition as easy as possible. You may also want to look into a valuator or broker who has experience with those that are selling a business with hopes of retiring.
Along with a broker and valuator, you should also consider hiring a lawyer. A lawyer will help you file all of the documentation needed to make the sale of your business legal. A lawyer will also help you iron out all of the details, in order to make sure nothing sneaks up on you in the future. You may also need help with your taxes because of the sale.
Save What You Need
Remember, just because you sell your business doesn’t mean you never have to deal with it again. You’ll need to retain your business documents from the past in case of a tax audit or any other hitch. If you don’t have everything filed electronically, you’ll need to save copies of all your documents either somewhere in your home or in a self storage unit. This can be a lot of paperwork and you’ll need to keep it for between three and six years per IRS standards.
Once you start getting interest in your business, be sure that you don’t settle for the first offers that come your way. Be sure that you get exactly what you want for your business and that you can be happy seeing it going into the hands of the next person in line.
It can be hard selling your business, but it’s important to remember what a life of retirement can afford you. You get to spend more time with family, relax, and do the things that you enjoy in your free time. It’s never a good idea to go back, so don’t even consider it as an option. Once your business is sold, keep in mind that it’s gone forever. So be sure that you keep this in mind and can live with the decision you made to sell in the first place while you spend the rest of your life enjoying retirement.