Business Valuation - Baby Boomer Business Owners Tipping the Scales?

You, or someone very close Antares Vending Machine you, are part of 78 million Americans Vending Machine Programming Manuals make up the largest population segment in the United States: Baby Boomers. Healthy Machine Snacks Vending This generation is classified as anyone born between Espresso Vending Machine and 1964. According to Sitemap recent study by BIG Research, 9% of boomers with household incomes exceeding $50,000 are small Automated Dvd Vending Machine owners. Using simple math that means 7 million companies in the United States are owned by individuals 44 62 Vending Machine Room old.

If you or a family member fall into this category (baby boomer business owner), what is your exit strategy with your business? Currently, 33% of business Vending Machine Supplies Stickers Tattoos Nhl in America will successfully transfer their family business to the next generation (Family Firm Institute). If you fall into the majority of US business owners (67%), then your children (X & Y generations) have opted to not follow in your footsteps of taking over the family business, leaving you with Eagle Vending Machine Parts life shaping decisions.

It is safe to say that 5 million baby boom business owners do not have a son or daughter to take over their privately-held business. This massive group of societal Drink Coca Cola In Bottles Metal Sign Vending Machine is now left with Alcohol Mixing Vending Machine a handful of options:

• Keep the business well into their retirement years, possibly leaving Cigarette Vending Machine Parts to estate settlement proceedings
• Dissolve the business should competent leadership not be in place after retirement
• Sell the business to a qualified buyer and have Starting A Vending Machine Business stability for future retirement and heirs

Based on the financial burden Baby Boomers have from their children, parents and own personal lives, combined with the wave of owners reaching retirement sooner rather Vending Machine Business Sales later, we recommend the latter -- sell the business.

The Exit Planning Institute has projected that over the next 12-15 years, more than 8 million privately-held US companies will be sold. This is a tidal wave of for sale companies flooding the market place, primarily due to baby boomers seeking retirement. The sheer volume of companies for sale will inherently reduce purchase prices due to simple supply-demand economics; tipping the balance of available businesses for sale compared to capable, motivated business buyers. Trying to stand out in a crowd of sellers will be difficult due to a saturated 120volt Espresso Vending Machine of other baby boom-owned businesses. Those business owners that truly plan ahead and start executing their exit strategy today, can avoid a major dilemma and be prepared for the future (a flooded marketplace of similar companies for sale).

In order to start the process of planning the sale of your business, you first need to know what that business is worth. Determining the fair market value of your business can be an eye opening and empowering process. Seek out professional, independent expertise in order to conduct an accurate business Automated Dvd Machine Vending report. For the purpose of planning and determining fair market value, you should expect business valuation fees to range from $3,000 - $7,000, relative to the size and complexities of your small business operation. Once you have identified what the company is worth, you can then make decisions with confidence and choose your future path wisely. You will also be able to better understand value drivers specific to your type of business and industry. If the stars are aligned, you may wish to consider selling the business sooner rather than later. If the value is lower than you had expected, you can strategically grow and refine your business to increase value for your future exit. Timing is everything in the sale of a business.

Dont try to go at Raiders Vending Machine on your own as that can be a long, painstaking process filled with inaccuracies and frequent misses. Rely on trained professionals and advisors to guide you down the exit planning path and give yourself plenty of time to do it right. A typical exit advisory group could consist of an attorney, accountant, business appraiser, business intermediary/broker, and financial planner. For smaller businesses, a couple of these roles can be consolidated for cost efficiencies.

Now more than ever it is critical that baby boom business owners figure out where they stand so they can strategically navigate for the future. You may have heard the adage, how can you be lost if you do not know where you are going? Ask yourself where you want to end up in life, not just for yourself but your family. What new challenges or hobbies do you want to take on in the second half of your life? Can you afford to do these things? Determine your ideal destination and end result, then reverse engineer your path to reach those specific goals. For the retirement planning of a small business owner, the starting point in all of this should be a small business valuation. It takes years to build a successful business, dont rush your exit. Know your value, know your business!

Scott Gardner is with www.fairmarketvaluations.com, one of the nations largest networks of business valuation consultants. Scott has been working closely with business owners for more than 10 years, ensuring their sales, marketing, financial, and exit objectives are successfully executed. With more than 400 experts serving all major US markets, Fair Market Valuations delivers face-to-face business valuation to small business owners seeking a future exit from their companies. He can be reached at sgardner@ fairmarketvaluations.com or 877-VALU-BIZ for more information.