Tampa, FL, March 29, 2018 --(PR.com
)-- Business owners have a couple options if they are looking to retire. First, they need to decide what their ultimate goal is. Do they want to completely exit the business? Or do they just want to take a step back and pin the responsibility on someone else? It’s up to business owners to decide how they want their money to work for them and how much free time they want to have.
Regardless of the route a business owner decides to take, all or a portion of the business needs to be sold. Business owners need to know how to manage their money. Benchmark International’s specialty is selling businesses, and a wealth manager’s specialty is showing business owners how to manage their wealth, so if an owner is considering an exit from the business, he or she needs to have these conversations early and make sure to plan accordingly to obtain the life goals he or she has made. Business owners need an exit team in place.
First and foremost, the key to having enough money to retire comfortably and continue living the lifestyle one knows and loves, is selling the business for maximum value. Selling a business independently might sound like a good idea: less money out of pocket to get out of the business and to go on living the post-retirement dream.
Managing Director, Clinton Johnston points out that business owners have two choices when selling their businesses. He said, “There are people who will do it slowly on their own and won’t spend much money, but they more than spend that in their time. And then there are people who will go out and get the right lawyers, the right accountants, the right brokers, and they will pay to get the deal done, but it will free up a massive amount of their time.”
Johnston further explains, “The reason the second way is better [hiring the right team to help] is because the worst thing you can do in the process of selling your business is get too busy selling your business to actually run your business because buyers are always concerned that the reason you are selling is because you’re concerned that the business is about to fall apart.”
Owners need to weigh this decision heavily when preparing to sell a business. If getting maximum value is most important and being able to retire and continue living the lifestyle one knows and loves, then an owner really needs to use a team of professionals who can help him or her get just that.
Christopher Swink, Senior Director at BNY Mellon Wealth Management, expressed that it’s important to understand your post-retirement expectations.
“A lot of people don’t realize all the things they really want to do, and how much it will take to do those things,” he said. Swink said, “A lot of times they don’t have the right team of advisors when they sell the business, instead they use the same team they had when they owned the business.”
When owners are planning to retire and exit their businesses, an important aspect they need to consider is surrounding themselves with the right experts who have the experience and credentials to serve the unique needs of business owners and their families.
How far one goes through retirement depends on a solid exit strategy. Speaking with a mergers and acquisitions specialist, like Benchmark International, to better understand the current M&A market and to learn how one can get the most value for his or her business is a good place to start.
About Benchmark International
Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $5B across 30 industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 13 offices across the world, have assisted hundreds of owners with achieving their personal objectives and ensuring the continued growth of their businesses.