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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

  • Writer's pictureStephen Armstrong

Selling Your Small Business

Are you thinking about selling your small business and sailing into the sunset?  Have you poured blood, sweat, and tears into your small business over the years and are now ready to settle into retirement?  That’s great, but where should you begin?  In this article, we will discuss a few simple questions that will help you in the planning of the sale of your small business. 

 

Question 1 – When Do You Plan To Retire?

This question sounds relatively easy, but the reality is that over 70% of small business owners don’t know how to answer it. 

 

Fear of the unknown is a real thing.  Questions like, “If I sell my business, will I have enough to live on?  Will I be able to find the right buyer?  What are the tax implications of the sale of my business?  What is my business worth?  How do I plan to retain key employees?”  Facts are your friend, so let’s start putting some data together to help you in the decision-making process.

 

Question 2 – What Is Your Exit Strategy?

These questions build on each other, and there is some overlap in the responses to some of them.  However, this question starts to help you gather relevant data about your business, which will, in turn, help you answer the question, “When do you plan to retire?” 

 

In this stage, you will begin to answer questions about the future of your business, management, and ownership structure.  Can you sell your small business outright?  Do you have equipment to sell?  Do you need to stay on as a consultant for several years? 

 

These are just a few simple questions to ask yourself as you begin to plan to exit your business. 

 

Question 3- Have You Planned Your Exit Strategy?

Did you know that the average small business owner has 90% of their wealth wrapped into their business?  No wonder it is hard to answer the question, “When will you retire?” 

 

Here is another stat for you: 70% of Baby Boomers (roughly ages 60-78) don’t have a plan for exiting their business.  Maybe some enjoy what they do, and they don’t intend to slow down at the moment.  Others can’t fathom the thought of not having an income and they don’t have a retirement plan in place.  Some don’t know if they have saved enough for retirement. 

 

A wise and smart business owner will plan for their retirement about five to six years before actually retiring.  Why?  Part of that question is answered in Question 4 (Do you have three years of financial audited statements by a reputable third party?), and part of that answer is in Question 2 (Will you need to stay on as a consultant for a few years?).

 

Question 4 – How Do You Plan To Maximize The Value Of Your Business?

Do you know what your company is worth?  Before selling your business, you should have three years of financial audited statements by a reputable third party to get an accurate valuation.  Most small businesses have their books done by a spouse, the owner, a friend, etc., but to maximize the sale of your business, you need to have a professional “sure things up.” 

 

Question 5 – What Is Your Plan When You Exit The Business?

Lastly, for the purposes of this article, what does retirement look like for you?  How much can you spend in retirement?  Are you going to outlive your money?  Being able to quantify this in our brains is impossible.  We all know that saving in an employer-sponsored retirement account is good, and saving in a Roth IRA is also good.  But what does it really mean in the end? 

 

This is where a Financial Advisor can help create some projections for you on paper that will aid you in the decision-making process of planning for life after retirement.  Maybe you aren’t retiring. Perhaps you are just selling the business and moving on to something else.  Either way, you need a plan that answers the question, “What will I do after I sell my business?” 

 

Conclusion

Have you figured it out yet? Many of these questions can be answered by meeting with a Financial Advisor and CPA, and many more need to be answered.  

 

As a small business owner, you probably feel like you work 80 hours a week, and maybe you do; so, when do you have time to plan for the sale of your business?  Here at Whitaker Myers Wealth Managers, we will do our best to help you in the sale of your small business, and we have a 3-step process to help you maximize the valuation of your business, mitigate the risk during the sale of your business, and map out the future as you sail into the sunset.  So please reach out to an advisor today so you can be confident in the timing of your decision to sell your business.

Kommentare


Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

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