Business for sale due to retirement? What you need to know!
When you're preparing for retirement, the decision to sell your business may be the next logical step. At Match Plan, we understand that selling your business is an emotional and complex decision. Thanks to our years of experience and expertise in mergers and acquisitions, we'll guide you through every stage of the process. From finding the right buyer to handling the legal and administrative formalities, we're here to help you sell your business with peace of mind. to sell and enjoy your retirement.
Why sell for retirement?
There are several reasons why many SMEs are sold as they approach retirement:
1. The transition to retirement
Retirement offers the perfect opportunity to hand over the reins. It allows you to enjoy some peace and quiet, without the daily responsibilities of business.
2. Safeguarding the future of the company and its employees
Selling your company ensures it remains in good hands and safeguards the future of your employees. A new owner can bring fresh energy and ideas, which promotes the company's growth and stability.
3. Emotional considerations
Selling a business often brings strong emotions, especially when you've spent years building and growing it. It's important to find a buyer who shares your vision and values, so you can say goodbye with peace of mind.
4. Practical considerations
Selling a company often involves complex practical issues, such as determining its value, finding suitable buyers, and dealing with legal and administrative processes.
Challenges and solutions
1. Challenges of selling a business
The decision to sell your business, especially when it is for sale due to retirement, comes with a number of challenges:
Emotional involvement
: As an owner, you often have an emotional connection to the business. Letting go can be difficult, especially if you've worked for years to build the company. These emotions can complicate the sales process, as you may struggle to make objective decisions.
Valuation
: Determining the correct value of your company is essential. A price that's too high can deter potential buyers, while a price that's too low can prevent you from realizing the full value of your hard work.
Finding suitable buyers
: Finding the right buyer who is not only willing to pay a fair price but also shares your vision and values is a significant challenge. You want to ensure that the new owner will continue the business in a way that benefits both your employees and the company.
Choice between pre-exit or exit strategy
: Depending on your personal goals, the choice between a pre-exit strategy and an exit strategy can influence your sales plan. A pre-exit strategy allows for continued active involvement after the sale, while an exit strategy involves the complete transfer of responsibilities.
2. Solutions that Match Plan offers
At Match Plan, we understand the challenges of selling a business and offer tailored solutions:
Accompaniment
: We offer personalized guidance throughout the entire sales process. From initial preparations to closing, our advisors are ready to support you every step of the way.
Expertise
: Thanks to our years of experience in mergers and acquisitions, we can help you objectively value your company and make well-considered decisions.
Extensive network
: Our network of potential buyers and investors enables us to quickly find the right parties, increasing the chance of a successful sale.
Potential buyers for a company for sale due to retirement
When you decide to sell your business due to retirement, there are different types of buyers who may be interested in your company:
Strategic buyers
: Strategic buyers are competitors or companies in related sectors that want your business to take over to increase their market share or realise synergy benefits.
Financial buyers
: Private equity funds and others investors are often looking for profitable companies to add to their portfolio.
Management buy-in candidate
: A management buy-in concerns an individual or group of individuals who are interested in taking over the company as a new business venture.
Management buyout (MBO) or family members
: In the event of a management buyout the employees take over the company, while in a family transfer a family member takes over the company.
Selling a company due to retirement in 6 steps
Below are the six steps for selling your company for retirement. Our advisors are happy to discuss the process further:
1. Introduction and valuation
We start with an introductory meeting, in which we discuss your situation and goals. We conduct a valuation to enter the sales process with the right expectations.
2. Preparing sales documentation
We prepare the necessary documents, such as an (anonymous) company profile, procedural letter, non-disclosure agreement (NDA) and a information memorandum. This documentation is carefully prepared and presented to convince potential buyers.
3. Approaching potential buyers
We compile a longlist of 30-50 potential buyers and select the most suitable parties. We send the anonymous profile to those interested.
4. Negotiations and declaration of intent
Interested buyers make an non-binding offer (NBO). We negotiate with the best bidders, optimize the bids and draw up a Letter of Intent (LOI) on.
5. Book review and contracts
After signing the LOI, the buyer carries out a book research Due diligence to verify the information provided. This includes the financial, tax, legal, and operational aspects of the company.
6. Transfer to buyer(s)
At the closing, the formal transfer takes place at the notary's office. The transaction documents are signed and the purchase price is transferred. Afterwards, you and the buyer can toast to a successful future together.
Tips for Successfully Selling Your Business Due to Retirement
Selling your business for retirement is an important step, but with the right approach, you can navigate the sales process efficiently and successfully. Here are some key tips:
Start preparing in time
: Start preparing for the sale early, preferably one to two years before you actually want to sell. This gives you enough time to optimally prepare your business and take the necessary steps for a successful sale.
Ensure an objective valuation
: Have an independent expert determine the value of your company. This will help you determine a fair selling price and prevent undervaluation or overvaluation, which is essential for a successful transaction.
Choose the right buyer
: It's important to find a buyer who is not only willing to pay the asking price but also respects your vision and company values. This ensures your company is in good hands and its continuity is guaranteed.
Engage the right advisors
: Make sure you work with experienced advisors, both legal and fiscal, who can guide you through the complex sales process. They'll help you prepare the necessary documents and ensure compliance with all applicable laws and regulations.
Why choose Match Plan?
With years of experience guiding business transfers, we understand the complexities and emotions involved in selling your business for retirement. Our experts can help you with:
- Carrying out an objective valuation of your company.
- Developing the right sales strategy.
- Finding suitable buyers and guiding the negotiation process.
- Ensuring careful completion of legal and administrative formalities.
Selling your business is more than just a transaction; it's an important step towards the future. Contact us and discover how we can help you sell your business successfully.
Contact
Please fill in your contact details and we will contact you as soon as possible.
"""*"" indicates required fields
Telephone
Would you prefer to contact us directly by telephone?
Then you can call +31 85 013 00 75.
- Over 30 years of experience
- 100% independent advice
- 1000+ entrepreneurs guided
Related blogs
No obligation Advice
Over 30 years of experience
Please feel free to contact us
advisors for an introduction.
✔ Business sale
✔ Company takeover
✔ Acquisition financing
✔ Independent assessment