10,000 “boomers” are turning 65 every day– something that will continue to happen for the next 18 years. Many of these boomers who are at or approaching retirement age, whether that means 65 or maybe 72, are small-business owners and the majority of them currently have no business succession plan in place.
Most are counting on the proceeds from selling their business to partners, family members, key employees or outsiders to supplement their retirement savings. Yet very few (only 30%) have a well-thought-out, written strategy in place. Without a prepared exit strategy, expectations will most likely not be realized and the proceeds of the sale of the business reduced. Maybe it’s that they don’t want to think about retiring. Maybe the ideal successor hasn’t been identified. Maybe they don’t know how to accurately put a value on their business or maybe they do not have a trusted adviser who can help them prepare the business for sale at an optimum price.
Exit planning is not optional! It is essential to receiving the maximum potential value for all the sweat equity invested by a business owner for so many years.