Business owners need reality check on nest egg
Business owners looking to retire and sell their businesses need a "reality check" on the value of those businesses, according to Business Connector.
It said there was an over-supply of business owners looking to retire, move on and sell, but as in real estate, an over-supply of properties for sale meant the price would go down.
Owners might have an over-inflated idea of the value of their businesses and a lot of baby boomers who are looking at their businesses as their superannuation would get a rude shock when it comes time to sell, Business Connector said.
"Instead of the hyped-up valuations that people get over-excited about, looking at a real strategy that creates a nest egg for the business owner is far more realistic," executive producer at Business Connector Mike Boorn Plener said.
When exit values of businesses dwindle, closing them is often easier, leading to job losses. In view of the number of businesses looking to change hands, this would impact the economy.
Business adviser Business Connector is bringing experts together in December under the Exit Strategy Masters program to give business owners advice on how to improve the value of their business when it comes time to sell.
Perspective Group's David Harvie said business owners who spend decades building up the value of their business are looking to cash in on this as they near retirement.
"There is a tremendous focus on accumulating wealth, accumulating debt. I believe it's time to advise people to take some of that money off the table," he said.
The program will include experts from Perspective Group, Shirlaws, Bluemount Capital, and PDC Creative among others.
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