How to sell your business and retire
As a business owner, it is common to turn to the business sale process in the event of retirement to realise your investment and transfer ownership to a suitable buyer. Taking the business sale route can help draw your affairs to a close and ensure that your business is in safe hands. Before embarking on this journey, you may wish to enlist specialist support to help maximise sale value, and in return, achieve a substantial price for your business.
A reputable business transfer agent can help market your business on a national scale, handle buyer enquiries and negotiate the sale with prospective buyers, allowing you time to concentrate on running your business. Partnering with a renowned team of business transfer agents can unlock access to a host of buyers actively searching for their next business acquisition. As part of retirement planning, you will need to plot a roadmap timing the sale of your business and prepare your business for sale.
Why sell your business to retire?
Selling your business to retire can directly inject cash flow and reduce your directorial responsibilities during retirement. Achieving the best price for your business is also in your best interests as this will contribute to the financial support you are likely to receive throughout your retirement.
Selling your business is an alternative option to company closure that allows for business operations to continue. By supporting the sustainable cycle of transferring ownership of businesses, you can present a lucrative opportunity to prospective buyers searching for a business of your calibre, whilst in return, achieve a substantial price for your business.
Preparing your business for the retirement sale process
When preparing your business for the sale process, you will need to be time conscious if you wish to secure a sale before your desired retirement date. At Ernest Wilson, we have assisted thousands of retirement sales, paving the road to a peaceful retirement for our business sellers. To begin the retirement sale process, an assessment will be conducted of your business to assess the value. Presenting your business in the best light can maximise value and assist in achieving a swift sale.
During the business preparation stage, you will need to collate up-to-date financial documents for the viewing of prospective buyers to demonstrate financial health. This will consist of a copy of the accounts you receive annually from your Accountants, as well as any other documents that may assist in encouraging a buyer to appreciate the potential your business offers. The Ernest Wilson team will guide you throughout this stage and support you during the sale process.
Confidential sale - If you would like to conduct a confidential business sale ahead of your retirement, we can support you throughout the process and ensure sensitive company information is protected by a Non-Disclosure Agreement (NDA). We can conduct a discreet marketing strategy that targets suitable buyers across the country and can guarantee confidentiality. As a leading business agent since 1956, we have established relationships with thousands of registered buyers throughout the UK.
Free Business Valuation – You will need to conduct a valuation of your business to determine how much it is worth, and how much you are likely to generate to support you during your retirement. We offer a free business valuation to equip you with the knowledge required to decide whether it is the right time to sell your business and facilitate your retirement.
During the business valuation process, we will request financial information to help establish a suitable sale price and ensure that this reflects market value. Our in-house team of renowned business valuers are experienced with retirement sales and familiar with the time-sensitivity elements surrounding this type of sale. We will comprehensively guide you throughout each stage and strive to secure the best final offer for your business.
When is the right time to sell my business to retire?
Many factors may influence the timing of your sale, the core element being- retirement. By enlisting an expert agent to sell your business for retirement, you can structure the sale around your personal circumstances and take advantage of industry expertise to facilitate the sale. The timing of your sale can impact how much a prospective buyer may be willing to pay.
We will help determine the right time to sell your business, taking into consideration the existing economic climate and any known impending legislative measures that may influence buyers. As businesses continue to endure the financial pressures inflicted by the coronavirus Covid-19 pandemic, buyers are on the search to secure their own business, and therefore future prospects.
Preparing for your retirement and business handover
It is common for business owners looking to sell their business due to retirement to offer their knowledge and specialist skills through a consultant capacity, post-sale. If you wish to extend your support following the sale of your business, this may present a casual career opportunity to ease you into retirement. This can often help former business owners adjust to retired life, presenting an alternative to full-time, hands-on business management and without the associated stress of being the business owner.
Alternatively, you may agree to a short handover period after the sale of your business to share your professional experience, make introductions and follow existing projects through to completion. Due to professionalism, pride, and reputation, you may feel it is in your best interests to support the business, existing clients, and the new owner throughout the transition period.
You may consider preparing your finances by taking into consideration the proceeds from the sale of your business and your tax position thereafter. Your tax liabilities are likely to shift after selling your business, including the likes of inheritance tax and pension contributions as you prepare for life after retirement.
Sell your business to retire
If you wish to sell your business to retire or arrange a free valuation of your business, we can help begin the process today. If you decide to proceed to market, we request no money upfront, and our payment structure is transparent. Founded over 50 years ago, we have the industry know-how, and decades’ worth of experience to ensure your business secures the best chance of selling. Call Ernest Wilson on 0113 238 2900 or submit an enquiry to request a free valuation in strictest confidence.
Testimonial
We have owned and run Bootle Stores & Post Office for 40 years. When we decided to retire a few years ago, we tried a couple of Business Transfer agents to sell our freehold business, but to no avail, that was until we were contacted by Ernest Wilson from Leeds. Robert, the owner, gave us an honest appraisal of our business and within days, our village shop business was on the map, complete with a full coloured and informative brochure supported with guidance from Stuart and his knowledgeable & professional team. They managed to sell our business even during the Covid-19 pandemic. We paid when our business was sold - no monies upfront. I would certainly recommend Ernest Wilson.
David Scott – Former Director of Bootle Stores LTD, Cumbria