- Baby Boomers are the generation born between 1946 to 1964
- They will start to reach 65 years of age from 2011
- By 2020 20% of small business owners will be over 65 years old
- 97% of businesses in New Zealand employ fewer than 19 people
- 89% of businesses in New Zealand employ fewer than 5 people.
Over the next five to ten years there will be an increasing number of small business owners looking to exit their businesses as they look to retire.
If you fall in to this category you should be preparing your business for sale now, not in five years time when you want to retire.
If you are going to maximise what you can realistically expect to get for your business the time to start preparing is now.
What Is Your Business Worth?
The price that someone will be prepared to pay for your business will generally be determined based on a factor of earnings.
A purchaser will look at your businesses previous earnings performance and use this to assess the likely future maintainable earnings.
Most owners do not position their business to optimise earnings which means they may not maximise the sale price when they come to sell.
While it is impossible to know exactly what is round the corner it is certain that the value of your business will be largely determined by presentation and profitability. The sale of your business might be several years away but you should start preparing for it now.
Maximising the value you can expect to get for your business will help maximise the quality of your next investment or your financial security in retirement.
How Can We Help?
We can help you:
- Assess the current value of your business.
- Identify ways to improve profitability.
- Assist with the implementation of profit improvement strategies.
- Assess the likely future value of your business.
- Assist with the eventual sales process.
Please give us a call if you would like to discuss anything you have read here.