When is the right age to sell my business and retire?
A number of factors will influence when the time is right for you to sell your business. For example, the market conditions, the state of your business and your health will all influence a decision of this magnitude.
However, one thing is for certain: as a business owner, it’s vital that you plan your exit strategy well in advance. By planning for the sale and your retirement ahead of time, you can maximise the value of your business and ensure you achieve the best possible sale price.
With this in mind, let’s take a more detailed look at the factors you should consider in relation to selling your business and retirement.
Prepare for a retirement sale years in advance
You should start preparing your business for sale a few years before you plan to retire. By planning over a period of years rather than months, you can build your business up and maximise its strengths.
If you own a family business and you’re passing it on to the next generation, then detailed succession and inheritance planning will likely be required. In addition, tax planning will also be hugely important, because it will ensure that your tax liability is minimised on sale.
Would you consider staying on in a consulting capacity?
You should also consider whether you’ll carry on working for the business in a consulting capacity once you’ve sold it. If you’re willing to, then you need to think about how long you’d be willing to stay on for. This will then need to be factored into your projected retirement date.
Further considerations before retiring
On top of this, when you start to think about when you will sell your business and retire, you should also:
- Obtain a valuation: a reliable valuation will help you decide what changes you could make in order to increase the value of your business
- Plan in time to make the required changes: remember that making these changes could take years, so plan in time accordingly. During this time, you may streamline the business to make it more stable and profitable
- Consider systems and processes: introducing new systems and processes (or updating the ones you have in place) could make your business more competitive
- Get help: by seeking the help of qualified accountants, legal experts and business sales brokers, you can maximise your sale price and make the process as simple as possible
Get professional guidance today
There’s no ‘right’ age for you to sell your business for retirement. But, here at Kaiser Solicitors, we can advise you on how to best prepare your business for sale.
Depending on your situation, we might also help you:
- Draft and negotiate the terms of the contract for sale
- Limit liabilities and warranties
- Arrange the transfer of shares (for the sale of a limited company)
- Facilitate the handover of key business relationships, such as suppliers, clients/customers, and employees of the business
We operate on a fixed fee basis, so you always have an accurate picture of the costs involved. Our services are tailored towards your unique objectives, so that we can strive for the outcome that fits your plans.
Plus, with our knowledge, skill and experience, we can provide you with the best possible representation. If you would like further information, want to chat about your situation, or would like to start the process of selling your business, please contact us today.