Recent data from the U.S. indicates that many older Americans are bringing forward their retirement, aided by a robust stock market and soaring house prices.
The economic factors mentioned above are just as relevant to Australia.
Local labour shortages and supply chain issues may also influence business owners to sell their business and bring forward their retirement.
Is your business ready for sale?
Like any asset you intend selling, it pays to review your business and ensure all components are in good order.
These include,
- Business systems and processes
- Customer and supplier relationships
- Revenue and profit generating activities
- Future growth opportunities and strategies
- Team balance and performance
Do you know what succession options are available?
It is important owners explore all their options before selling, including,
- Sale to a third party
- Sale to a competitor, supplier or customer
- Full or partial management buyout
- Family succession
You should also determine the estimated sale price associated with each succession option.
Do you have a personal plan after the business is sold?
It is common for business owners to dedicate an extraordinary amount of time to building their business.
Does 60 – 70 hours a week sound familiar?
You need to have a personal plan in place detailing how you intend using the additional 3,500 hours available each year, after your business is sold.
Travel and new recreational activities alone, is unlikely to fill this void for the next 20 years.
If you are considering buying another business, does it suit your future requirements better than the business you are selling?
Will you have sufficient funds to retire?
Once you have completed your personal plan, you need to determine if you can fund your new lifestyle.
It is imperative you discuss this matter with your Financial Adviser before you decide to sell your business.
Many business owners are surprised by the returns received in passive investment funds, when compared to the profit derived from their own business.
Next steps?
Why not complete our Business Succession Diagnostic to determine how prepared you are to exit your business in 2022.
Just click on the link below.
Organisational Problem Solving | Brisbane (munronoon.com)
Selling your business requires a plan, and we are here to assist you with each step.
Contact us today if you would like to schedule a complimentary initial appointment.