Baby Boomers are the largest segment of the population and have been since they became a generation. Now, they’re also the largest segment either retiring or approaching retirement. Many postponed retirement during the recession in hopes of getting a better price for their businesses after the recession was over. That’s not necessarily the way it’s happening.
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Like homeowners who bought at the height of the housing frenzy, many small business owners are facing disappointment that they still cannot get a good price for their businesses years after they originally had planned to retire. Relying on price bounce back, however, does not guarantee asset value.
Business owners who carefully built and maintained value in their businesses regardless of price levels will fare better when prices bounce back than those who were riding on inflated values with crossed fingers that such outsized prices will return. It’s now imperative to get their operations flowing smoothly and efficiently if they have any real hopes of getting a good offer.
This includes cutting costs as well as streamlining operations. As an advisor to small business owners, you can offer invaluable advice for those clients who may have great talent for bringing in business but who don’t seem able to add value to their bottom line.
There’s still time since the economy is taking the slow road to recovery. Another excellent reason to do an overall financial and investment review, developing a strategic business value
recovery plan could become a very nice niche to focus on.