The value these business owners will receive for all of their hard work and investment is highly dependent upon how they approach and execute the sale process
Lancaster, PA (PRWEB) August 14, 2008
As the millions of Baby Boomer Business Owners begin planning for retirement, their businesses will also go through transitions from one generation to the next; to inside executives or to an outside buyer. Most business owners want to maximize their business' value and that creates difficult scenarios for the owner.
"The value these business owners will receive for all of their hard work and investment is highly dependent upon how they approach and execute the sale process," says Jim Eshleman, president and founder of Strategic Endeavors LLC. "Failure to plan for this most important event can result in under-selling your business or worse yet, liquidation at a fraction of the going concern value."
Eshleman has been selling businesses since 2000 and is seeing an increased interest in how to position a business for sale. "Sadly, many business owners do no planning or wait until they are burned out, bored or in poor health and then hope for an employee or buyer to approach them. They sell from the weakest position."
"But if these same owners had run their businesses, year in and year out, as if they were going to sell them, they would be building value over time and positioning themselves to get the maximum value at whatever time the sale occurs. Life's unexpected events can change an owner's timing in an instant."
Eshleman also notes that the other key to maximizing value is to create a market for your business. "Due to confidentiality concerns, owners instinctively feel that they should wait for that one right buyer to come to them. You can run all the formulas and models you like, but at the end of the day, a business is worth what a buyer is willing to pay. If you only have one buyer with no competition, how do you know that he/she is the one that will pay the most for your business?"
As a result of what the team at Strategic Endeavors has seen in the marketplace and through the experience of actually selling companies, they have developed several new tools for business owners who are ready to begin planning for the eventual sale of their businesses.
"We have taken some of the processes that we use over and over in business sale transactions and made them available to business owners on an a la carte basis," notes Kate Eshleman, a senior business analyst and Eshleman's daughter.
"What we see more and more frequently with the Baby Boomers is that they are thinking ahead. They want to maximize enjoyment of life after business but they don't know how to prepare and are afraid to get advice for confidentiality reasons." Eshleman notes that "business sales are heavily influenced by the last 3 to 5 year history. The ideal time to begin planning is about 5 years out.
"It's an exciting time for these Baby Boomer business owners," says Kate Eshelman. "They have worked their entire lives to build these businesses and now it's time for them to reap the benefits. The exit planning process can re-energize and refocus an owner as well as lead to a much more financially secure retirement."
Strategic Endeavors LLC serves owners who want to plan for and execute the sale of their privately owned business. In working directly with the business owner and a team of professional advisors, Strategic Endeavors spearheads the selling process to maximize the value of the business. Based in Lancaster, PA, the father-daughter team has transacted businesses in manufacturing and distribution, service contractors and professional service businesses. More information can be found at http://www.strategicendeavors.com, on their blog at http://privatebusinesstransfer.wordpress.com or at 717-898-7662.