FOR IMMEDIATE RELEASE
Media Contact: Michael Meyer
Boomer Business Owners Retiring at an Accelerating Rate
Princeton, NJ – March, 11, 2010 – Expert business broker, Michael Meyer, with the Benjamin Ross Group, a mergers and acquisitions firm, says with baby boomer business owners retiring at an accelerating rate, the number of businesses for sale is rising. As a business broker, Meyer specializes in privately held businesses for sale priced from $200,000 to $20 million.Baby boomers make up the largest segment of the U.S. population. There are an astounding number of businesses that are currently owned by baby boomers. In the next ten to fifteen years, it is expected that more than eight million privately-owned U.S. companies will be sold. Meyer is ready for the blitz. “When the time comes to exit their business, the business owner will have several options,” said Meyer.
Some may choose to retain ownership of their business throughout their retirement and play a passive role in the day to day operations. This is not as easy as it sounds and most business owners have the bulk of their savings wrapped up in their companies and need to sell their businesses to fund their retirement.
Another option for boomer business owners would be to transfer the company to the next generation. The question is – is the next generation interested in owning the business and do they have the financial and business qualifications to make it work? Successful family transitions require years of planning and preparation, so unless the retiring business owner has a transition plan in place, a next generation sale maybe out of the question.
It seems clear that the vast majority of retiring boomers will sell their companies on the open market. “Far too many business owners do not realize that careful strategic planning to selling your business is just as important as planning to launch and growing your business,” said Meyer.
Because acquisition is the most common exit for a business owner, Meyer offers some tips to better prepare you to sell your business.
Start the process early. It’s a good idea to begin preparing years before the sale.
Get your “house” in order. Make sure that you have been keeping accurate financial records and that your assets are ready for sale. This includes both tangible assets, such as equipment and inventory, as well as intangible assets such as contracts, leases, patents, trademarks, etc. Make sure that everything is assignable to the buyer and be prepared for extensive due diligence.
Try to see it from the buyer’s point of view. A buyer’s motivations are often different than the typical business owners. While the entrepreneurial business owner may get excited about innovation and creative strategies, the buyer cares much more about the potential for stable revenue streams and growth potential. Understand your potential buyer’s point of view and motivations.
Make yourself less central to the business’s success. The buyer wants to buy a business, not a job. From the buyer’s perspective, it’s better if the current owner is not important to the success of the business. Therefore, in planning the sale of your business, you should begin training your management team to take over critical business functions. If all the decisions revolve around you, the owner, then the value of the company will be limited without the owner and therefore, the business is less attractive to a buyer.
Stay focused and run the business as if you were not selling it. “It’s important that you do not get too wrapped up in the sale process or emotionally involved in any particular sale offer. As difficult as this is, it’s best to act as if the deal can fall through, even if you are in final negotiation period. Keep your focus on growing your business until the check has cleared and is in the bank,” said Meyer.
Work with professionals. “If you are a business owner seeking to sell your business, you can benefit from qualified outside advice and assistance,” Meyer suggested. “An experienced business broker will provide you with guidance regarding valuation, due diligence, and the marketing of your business. Without a competent advisor, you decrease your chances of selling your business as its maximum price.”
NOTE – Michael Meyer is a leader in the field of buying and selling businesses, and brings more than 25 years of business experience to the Benjamin Ross Group. Meyer is also a Certified Business Intermediary (CBI) – a highly regarded designation in the business brokers’ field which involves extensive education and testing, and trains brokers in the International Business Brokers Association code of ethics. He is available for interviews or as a resource on business-related news topics including selling a business or buying a business. Michael can be contacted at (215) 357-9694 and firstname.lastname@example.org.
About Benjamin Ross Group: With offices in Princeton, NJ, Southampton, PA, and Radnor, PA, the Benjamin Ross Group is the most experienced, professional and exclusive business sales, mergers and acquisitions/ business broker firm in the Mid-Atlantic Region. The company represents well-managed businesses, regardless of their size. It provides a full range of services relating to buying, selling or merging businesses; business financing and valuation; and exit planning. For more information, go to: www.BenjaminRossGroup.com
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