By Tensie Homan, CPA and author of “Beat the Exit Bubble”
The majority of business owners are planning on the proceeds from the sale of their business to fund their retirement. However, the 2013 State of Owner Readiness Survey revealed that more than 80 percent of business owners have no formal transition plan.
Only 25 percent of businesses up for sale actually sell. Those odds are likely to become worse as millions of baby boomers attempt to sell their businesses over the next decade in the exit bubble.
Combine the lack of readiness with the historically low success rates for selling a business, and you could be looking at the perfect storm for business owners.
Below are five tips to increase your odds for a successful business sale:
1. Start planning now. It’s never too early or too late to start planning the sale of your business. You’ll need to become informed on the emotional aspects to anticipate and educated on the numerous complexities of the business sale process. This will help put you on a level playing field with buyers and increase the odds of a successful sale.