Welcome back to my weekly articles on business building. In order to extract value from a business it needs to be sellable. Having a solid retirement will be based on how successful they are in exiting their business with the final sale value of a company being the largest determinant of how successful that retirement is. Unfortunately, many business owners are not focusing on enhancing or accelerating value as they get closer to retirement, they tend to focus on winding down. By shifting their paradigm to transforming and driving towards value enhancement in their businesses as they near retirement, owners can drive significant value that would be realized at retirement. The article illustrates how enhancing value can affect the value of a business.
Most owners get one chance to get it right when they decide to sell, yet most owners cannot sell the business they built (only 1 in 10 are successful) because they did not build a sellable asset. If selling your business to fund your future lifestyle is a must, ask yourself whether you are prepared or not, and then identify what you need to do to get to where you need to be.
With up to 76% of Canadian businesses reporting that they hope to exit in the next 10 years, being unprepared might cost you both your legacy and your retirement. With only 1 in 10 having a plan, the odds against are not in an owner’s favor.
We welcome you to visit us at: www.mexit.ca to download this article and to find more resources focused on preparing your business for both future successes, and for a successful exit or transition.