The first wave of baby boomers are turning 65 and for a lot of them, this means retirement. Many of these baby boomers are business owners and most of their wealth is in their business. This brings us to an interesting situation when selling the business in order to retire. Financial advisors and wealth managers can handle the investment part after the sale, but how do business owners retiring maximize the value of their business and prepare for the sale?

This is when an expert new jersey business broker can provide the most benefit. First, confidentiality is a must. If word gets out that a business is for sale it could create employee issues, supplier and partner issues and more that can negatively impact a business. Buyers will learn of these issues and will not be comfortable making an offer. A Neumann and Associates, a new jersey business broker with over 25 years of experience is committed to confidentiality, this is always a priority in all communications.

To prepare to sell a business and maximize the value, it is critical to start early. You the business owner have now told only those on a “must know” basis and you have begun critical items early. A certified business valuation from a reputable third party is a must. A Neumann and Associates has been involved in over 1000 business valuations. The only way to get true market value is from a certified business valuation.

Another item to consider is timing. We know that the first wave of baby boomers are turning 65 and the economy has rebounded. This has lead to an increase in business transaction activity the trend may continue. Timing can be impacted by the market cycle, government, industry, financing and other factors. It is important to have an expert who is knowledgeable in these factors and can suggest the best possible solution. This is only one of the critical reasons why obtaining proper representation is a must.

Most businesses cannot be sold. This is true, in fact only about 5% of businesses can be sold. This is an alarming statistic. A breach in confidentiality, lack of a certified business valuation, poor or lack of representation are major contributing factors to an unsellable business. The SBA in fact sited poor or lack of representation as the biggest reason for failure to sell a business. For business owners retiring or just selling, they often not only want to sell but sometimes have to sell. Becoming a motivated seller is never good. This is another reason to start the preparation to sell early. Obtaining a business valuation upfront or even periodically can give a great snapshot of a business and drivers of value. The information can be used to make the business more valuable and much more sellable.

A Neumann and Associates, a premiere New Jersey business brokerhas built a tremendous reputation as a leader in servicing business owner clients in engagements, preparation to sell a business and the business transaction itself. For questions and more information, A Neumann and Associates is happy to help at www.neumannassociates.com/contact.cfm.