One of the top reasons why a business owner might sell is due to retirement. As older generations begin to hear a calling to Florida or California, they need to ensure their business is still intact long after they’re gone. A business owner’s retirement is fueled by the profits from their business, so finding a confident successor is of the utmost importance to them.
Most retiring business owners usually have a rough estimate of what their retirement funding will be, and sometimes their guesses are grossly overestimated. This is why it is important for a retiring business owner to work with a wealth manager to plan their future.
For buyers, asking a seller if he or she has planned their retirement with a professional will allow you access to a concrete retirement plan. This will help you, the buyer, have a smoother transition period and bridge the valuation gap.