15 Sep Around the Web: A Week in Summary
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A recent article from Exit Strategies Group entitled “Can I retire if I sell my business?” discusses business ownership and retirement planning. Many business owners have most of their wealth tied up in their business, so the business plays a big part in their retirement plans.
When contemplating retirement, consider these two key questions:
- How much do I need to retire? If your current personal assets plus the value of the business do not reach the amount you need to retire, then it’s time to work on increasing the value of the business in advance of a sale.
- How will the business do without me? If the business can’t operate without you, it’s time to make changes (i.e. implementing a manager position and creating an operating manual) so that it can operate without you when you are ready to exit.
A recent article from Viking Mergers & Acquisitions entitled “So, You’re Ready to Sell Your Business…Now What?” explores steps business owners should take once they decide it’s time to sell their business. Knowing what to expect and being prepared are essential when it comes to selling a business.
Steps to consider include:
- Getting familiar with the process of selling a business
- Having a business valuation performed
- Crafting your marketing plan
- Maintaining confidentiality
- Preparing for due diligence
A recent article from Axial entitled “Owners: Keep Your Eye On Your Equity” explores the concept of an equity strategy. An equity strategy involves maximizing your invested wealth for retirement. When it comes to your business, this means analyzing risks, opportunities, and forecasts of future value.
When defining an equity strategy in a consolidating industry, scale and capital are of great importance. This may require an investment in technology, for example. If you are lacking the capital to scale, one potential avenue is private equity – taking on an investor so that you have the capital you need to scale, leading to a greater business value down the road when you are ready to fully exit.