How to Sell Your Business for More Than You Expected

Your Business is Probably Your Largest Lifetime Investment – So Make the Most of Your Financial Legacy While There’s Still Time

Most privately held businesses in the U.S. today are owned by Baby Boomers, aged 60–78 in 2024. Trillions of dollars in business value will change hands over the next 10 years as they retire.

Sadly, most small and midsize business (SMB) owners do not have a formal retirement plan, exit strategy, or succession plan. They are simply unprepared to optimize their lifetime professional legacy.

Statistics further indicate that the majority of SMB owners have withdrawn most of their business profits over many years as owners’ equity cash disbursements. They have failed to reinvest these profits in value-creating components that would interest future professional investors.

As a result, the private equity world estimates that 80–85% of SMBs are simply not worth buying.

Many of these owners may choose to find an “unsophisticated” buyer to unload their value-starved company on (key employees, take note), or simply lock the doors one day and cash out whatever meager assets remain.

Obviously, this does not bode well for stable, secure retirements for the majority of SMB owners.

There is Hope

Thankfully, being unprepared to exit the industry and retire successfully can be rectified.

We recommend that SMB owners, regardless of their current age or exit urgency, develop three interwoven strategies to maximize their post-ownership life.

1. Life-After-Retirement Plan – We begin here. Surprisingly, most business owners do not adequately plan for life after retirement. Unsurprisingly, over 75% of owners regret their exit decisions within 12 months of retirement – don’t be one of these.

2. Business Exit Strategy – Successfully transitioning your business involves much more than just cashing a check and walking away. With billion-dollar private equity firms entering our industry through high-performance acquisitions, future opportunities are historically unprecedented. Numerous exit-related considerations require proper evaluation and planning to optimize outcomes for the owner and for everyone important to them.

3. Business Succession Plan – We believe that owners owe it to their rockstar teams and loyal customers to prepare everyone for the coming transition. The goal is to create significantly better futures than were enjoyed in the past. Genuine win-wins for everyone involved.

These three investment-optimization plans must be carefully coordinated – none stands alone. We have helped scores of clients develop their unique strategies, and we stand ready to assist you too.

And You Should Begin Now

Don’t wait until it is too late to make the most of your legacy-building opportunities. No matter how old you are, or how long you have owned your business, we recommend that you establish your end game right now – with as much clarity as possible.

Of course, no matter how thorough your future planning is, time and unforeseeable opportunities will continue to cause your plans to evolve. That’s opportunistic; a very good thing.

But having a clear vision now and driving intentionally into your evolving opportunities will help you sell your business for more than you ever expected.

To consult with an expert on your exit strategy, succession plan, or legacy goals, scan the code below and take the first step.