There are very important decisions to be made at the end of a business that will determine just how profitable that business is for its owners. Planning for retirement can seem straightforward, but there are some potholes that you should look out for.
Here are some of the top considerations for business owners when planning for retirement.
Retirement looks quite different for different people. Some business owners want to go completely off grid, forget everything, and live in the woods. Others want to maintain a presence in the business world, specifically in the business they have just sold.
There are ways to negotiate advisory positions for the latter and advantageous compensation packages for the former.
However, do not make the mistake of thinking that just because you were good at your business that you will be good at this business (of negotiation).
Many business owners consider their families when they are preparing for retirement. Do you need to sell your business for a large cash injection, or could you perhaps take in more money over time through smaller payments?
In most cases, a business owner will make this decision for more than just himself. A good business broker will be able to help you maximize your results based on the needs of your family as well as getting the most advantageous payout.
Selling a business the right way means paying the least amount of money to Uncle Sam possible. A wrongheaded sale may end up providing you with a huge gross take, but a smaller net than you should legitimately get.
One of the most important roles of a business broker is to inform you of the tax implications of your exit strategy. Do not forgo this analysis before you decide to sell a business, and make sure that you have the team to perform this analysis at the proper level of sophistication it deserves.
Depending on the size of your business, it can mean quite a substantial sum of money, and proper tax analysis is always a good investment.
Even though you may be retiring from your business, your legacy is still at stake. The person or entity that you sell to makes a huge difference in the way that you will be remembered. What’s more, most people cannot let go of a business that easily.
When you have a good broker by your side helping you make these decisions, you can vet buyers much more precisely then you could alone. You also have the capacity to entertain offers from a much wider selection of people.
When you are ready to sell your business and retire, give the dedicated business experts at Murphy Business a call at (727) 725-7090 or fill out our easy contact form.
We can help you optimize your retirement plan and maximize your financial outcomes while preserving the legacy of your business and the personal goals that you have for yourself and your family after retirement.