Wednesday, February 22, 2006

Our Average Client Is 49 Years Old

We keep track of many statistics. One statistic which we track is the age of our clients when they first ask us to help them to sell their business.

To get the best deal and sale price, a business owner should be prepared to work for several years for the buyer (there are exceptions to this rule so don't panic). By doing so, the buyer gets a comfort level that the seller is not just taking his money and retiring. In addition, the buyer generally views this as a positive commitment by the seller. In some cases, it can influence the buyer to pay a higher price for the business and/or include an incentive plan that entices the seller to continue to work hard and grow the business.

That is why 49 is somewhat of a golden age. It gives us sufficient time to find the best deal for our client and the client is young enough to work for a few more years but still be on his own and retired by age 55.

It's hard to beat that so don't wait too long to plan your sale or it will cost you some money and several years or so of your work-free retirement.

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