COVENANT BUSINESS PLANNING SOLUTIONS

Thinking of Retiring

As a business owner, you have spent years building your success. Long hours, endless thought and attention, hard work and focus – you’ve put them all in, and it has paid off. You also feel rewarded by the work you do and look forward to showing up each workday at your place of business. Why then should you think about retiring?

Perhaps someone has recently asked what you plan to do when you retire. Maybe something in the news has triggered the thought. Even though you weren’t planning to retire, you’re suddenly asking questions about what retirement might look like.

Now might be the best time to consider selling your business, especially if you’re approaching retirement age. In recent months, media and professional service firms have been buzzing about the benefits of such strategies.

The primary factor is timing. Business sale pricing, like most economic events, is subject to certain natural and recurring cycles. Most Mergers & Acquisition advisors agree that the economy will experience a wave-like motion over time, with cycles commonly running in six to 10 year waves. Acquisition opportunity normally rises when a) the cost of capital is low, b) growth opportunities abound, and c) significant advantages arise, capitalizing on technology changes. Sellers are benefiting at peaks, reaching all-time highs.

The timing is also right for obtaining cash to invest this year. Markets are humming at relatively high levels. Prices will likely moderate and allow for solid investment-buying opportunities over the next two to three years.

But the good times may not last. Owners who decide to retain their businesses may need to wait another eight years or more to get the same price that a sale this year could bring. That’s a long wait for someone nearing retirement age.

But making the decision to sell your business can be very hard. For some, it signifies the loss of a career or a missed opportunity at a potential high moment in their professional careers.

Covenant Consulting Group offers personalized planning services for business leaders just like you. If you’re wondering whether this is the right time to think about retiring from your business, contact us at: http://www.covenantbusinesssd.com/contact_us/