Share:

After years of trial and error, happy triumphs, and humbling moments, many business owners choose to sell their companies before retirement. In this situation, a business lawyer will help ensure a seamless transition. There are also a few steps you should take before closing to help ensure the organization remains a success after you’ve stepped down. 

How to Sell a Business Before Retirement

1. Find Out Your Company’s Value

The thought of relinquishing control of your business to someone else can be unsettling, but with the money you receive in exchange, you could enjoy a blissful retirement.

To find out exactly how much to expect, hire a professional appraiser. They will weigh your company’s assets against its debts, as well as calculate the expected profits in the years to come. The right buyer will appreciate the work it took to build your company and be willing to honor that valuation. We have participated in the valuation and purchase process for many companies and have a network of highly respected professionals we can put you in contract with to assist in valuing your business. 

2. Prepare Your Employees

While you might not want to announce the sale to the entire company until it’s set in stone, you can prepare your managers and employees for the transfer of power.

business lawyerLong before closing, discuss with the buyer the benefits of maintaining your employees. Many buyers highly covet an experienced and in-tact team and new employment agreements can be executed between the buyer and your team during the purchase process. Also, discuss with a potential buyer the business methods that made you successful in the first place and consider offering to introduce them to both employees and customers. Buyers may also be interested in your continued consulting services on a limited basis which can provide a nice supplement on a relaxed schedule during retirement. Maintaining a positive relationship with the buyer of your business can ensure that the company you built will live on and remain inspired by your vision and ethics. 

3. Plan for the Future

If you have trusted employees you want to take care of, create a succession plan the buyer can cooperate with. For example, recommend to the buyer who will take over the CEO position to ensure practices that have made your business profitable remain unchanged. Alternatively, offer a list of possible successors and highlight their strengths. Once the purchase is complete, introduce them to your buyers to mediate the transition and create trust. Ultimately, selling your business means letting go of the reins, which many find to be a challenge after building a company, but as with any agreement, establishing a relationship with a buyer based on trust and mutual respect can avoid not only regret, but legal disputes in the future. We believe strongly in taking the time during such a transaction to ensure a mutual understanding of all parties expectations. 

 

If you need a business lawyer to help you sell your company, reach out to The Law Office of W. Randall Holcomb. This Greensboro, NC, attorney provides business litigation services to ensure successful transitions. They bring attentive, personalized counsel to each case. Learn more about their work with business law online or call (336) 888-8760 to schedule a consultation with a business lawyer today.

tracking