26 Mar Three Top Considerations for Baby Boomer Business Owners to Exit Successfully
Over 70 million baby boomers are believed to live in the U.S. The data shows that around 41% of U.S. small businesses are owned by baby boomers. Out of over 33 million small businesses in the US, 13.6 million are estimated to be owned by boomers. Of course, some may own multiple companies, lowering the actual number of boomer business owners.
Here are the 3 top areas baby boomers should prioritize as they prepare to exit from their companies:
1. Succession Planning. Craft a clear succession plan that outlines the timeline and the process of selecting, empowering, and preparing successors. The absence of a clear succession plan may result in instability or devaluation.
2. Financial Preparation & Valuation. Don’t assume your business’s current market value. Work with Business Brokers like myself to obtain a professional business valuation (if your company is big, use Investment Bankers and M&A experts), hire consultants to streamline your operations, create systems and processes, and resolve liabilities. Otherwise, when the time comes to exit, you may not get the maximum sale value you desire.
3. Tax Efficiency & Legal Structuring. Don’t take on your exit strategies alone. Consult tax advisors and attorneys to optimize the exit’s financial outcome. They can help you minimize tax burdens through strategic structuring.
Most importantly, don’t wait until the last minute. Start planning your exit 3–5 years in advance to address market timing, emotional readiness, and operational adjustments. Professional guidance from financial, legal, business brokers, investment advisors, and M&A experts is critical.
By the way, even if you’re NOT a BABY BOOMER and don’t plan to exit soon, you should consider these suggestions. Life happens (accidents, divorce, quarrels with a partner, health crises, etc.), and you may be forced to sell your company.
God forbid. If that happens and you haven’t prepared in advance, you may be forced to sell your company for pennies on the dollar.
The right time to craft your exit strategies was yesterday or even BEFORE you launched your company. Now is not too early…
The sooner you take your exit strategies seriously, the better you’ll be positioned, whether you’ll exit at all or not. There are only upsides.
Here is also a short video that expands on this:
To learn more about our Business Brokerage Service, visit our website at www.TheAtoZInvestments.com. Don’t hesitate to contact us for a FREE consultation session.
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