Make the most of your retirement sale

Selling your business can be an effective and satisfying means of funding your retirement. After potentially years and years of hard work, you may dream of selling your company on and living off the proceeds while you enjoy a well-earned break. However, as with all business sales, nothing is certain and it’s important to make the most of the opportunities presented to you to help you achieve the best possible outcome.

Below we’ve outlined some of the ways in which you can actively boost your chances of a successful transaction and make the most of your business sale ahead of retirement.

Plan ahead

To maximise your chances of a good price and/or a quick sale to the right buyer, it’s vital that you plan in advance and fully prepare. There is likely to be a great deal of competition (depending on the position of your market) and you’ll want to make your business stand out from the crowd if you want to achieve your ideal sale price and enjoy the swift transition that often comes with having your pick of the best buyers.

Begin by generating a list of factors that make your business shine in the face of competition, such as a strong employee roster, up-to-date technology or a strong reputation. This process should also use this time to find ways of demonstrating how your business will run without you. This is particularly important if you play a significant role in its day-to-day success as potential buyers may feel they’d be unable to replicate your achievements.

It’s also worth identifying the factors that are most important to the market you’re targeting. If you’re looking for a buyer who is ambitious and ready to push a business forward, highlight your company’s potential and (if in place) its social media presence. If you’re hoping to appeal to a buyer who wants a well-established business with assets and a strong client base already in place, highlight these areas as a priority.

Sort your records

Having comprehensive financial statements and clean, comprehensive records will be a huge draw to any potential buyer, who would otherwise have to struggle through unfamiliar paperwork without any prior knowledge of how the business has been run in the past. Ensure all your core paperwork and documents are up to date, including any statements on profits and loss.

Documents should also be available that demonstrate the company’s client list, property, and equipment as this will aid in the process of valuing the company due to the potential worth of such assets. Property, in particular, can make an enormous difference to the final sale price and should be documented clearly throughout.

In addition to the above, another huge draw for a possible buyer would be documentation that shows the processes and systems behind a number of areas, including manufacturing, distribution, and sales. For many, this step may seem excessive but by demonstrating that you are willing to go the extra mile you will not only be aiding the transition but also reassuring the buyer that they are purchasing a business from a dedicated buyer.

Get the right help

You’ve probably heard it time and time again, but having the right team in place really is the key to a successful sale. No matter how much of the process you wish to be involved with, a sale will only run smoothly with the right people filling key positions.

Solicitors, for example, are crucial to a smooth sale and should be chosen wisely and based on their reputation rather than their fees, where possible. A solicitor will be responsible for a number of the most important aspects of the sale, including the legal aspects such as the final agreement, and so must be a trusted member of your team.

Accountants are also a vital part of your sales team, taking responsibility for the financial aspects of the sale including the handling of your final sales price. Taxes are also important, and an accountant will prevent you from making any mistakes that would otherwise have resulted in costly fines.

You may choose to include additional team members such as marketing experts, sales agents and industry specialists who can all guide you towards the best possible outcome. Although these team members may feel unnecessary to some, if you’re willing to invest in their help they could provide vital guidance in what could be the most significant business decision you have made in your career. If you feel they would be right for you, find a reputable professional and enlist their services when you decide that selling for retirement is the right decision for you.

See also: Retirement Sales and Exit Planning.

If you are looking to sell your business as part of your retirement plans, click here.
For more insight on how to sell your business, click here.

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