How much is your business worth?

By Chris Goebel, Owner Crossroads Advisers

Many business owners plan to use the proceeds from a sale of their business to fund a significant portion of their retirement. Unfortunately, while most people know the approximate value of their 401(k) or other retirement account, as many as 80 percent of business owners don’t know what their businesses are actually worth on the market.

Typically, about half of a business owner’s assets are invested in the business itself—the other half are in outside investments. That means than a seller’s personal wealth and post-retirement quality of life may be at stake during negotiations.

After decades of putting your blood, sweat and tears into building your business, don’t you deserve to get maximum value when you sell it?

That’s why planning is critical to consummating a successful sale or internal transfer of your business.

Consider Family Dynamics, Too
Along with the financial considerations of your exit strategy, owners of family businesses also should think about the impact a sale or internal transfer will have on their close relationships. For example, if you’ve worked side by side with family members on a daily basis for decades, how will your retirement change your family dynamics?

It may be wise to broach the topic well in advance of a planned sale or exit. It also may be wise to seek guidance from an adviser who has been through the process.

Perhaps the lessons I learned from selling my family business can make the process easier for you.

Crossroads Advisers specializes in pre-business transition planning, including succession and exit strategies, and business growth and preparation planning. Schedule a complimentary one-hour consultation and business valuation with Chris by calling 216-533-4533. You can learn more by visiting CrossroadsAdvisers.com.