It’s too common these days to see seniors of retirement age still working part or full-time; not because they want to, but because they HAVE to. The traditional retirement age of 65 has been pushed further back due to years of economic uncertainty and downfall. Now, more seniors are working side-jobs to stay afloat, and business owners who are ready to sell are receiving offers far below their worth. It’s an unfortunate and concerning scene that creates uncertainty not only for now, but for the future.
While the economy has run its course of hills and valleys over the last decade, the path to real prosperity has remained slow or stagnant. This condition has burdened small businesses across the board, but has affected entrepreneurs in their 60s and 70s in particular, many of whom find themselves trapped in a “business purgatory,” unable to retire or sell their business at a price that will afford them the retirement they’ve worked so hard to enjoy. Many business owners find themselves waiting for an economic recovery that will reinstate the value of their business. However, that recovery is not a guarantee. Due to frequent shifts, an economic upturn might also only provide a brief window of opportunity, forcing business owners to make monumental life decisions within a short period.
This turn of events is especially burdening to small business owners who have tied their nest egg into their business. In fact, over 56% of small business owners admit to tying their retirement nest egg funds into their business, meaning they will need to sell their business at a profitable price in order to retire comfortably. Meanwhile, offers to purchase are coming in at insultingly low figures. As a result, 38% of those same business owners report having to put off or postpone their retirement.
While economic uncertainty is a stressful factor that can quickly complicate the selling of a business or an owner’s retirement agenda, not all hope is lost. Small business owners now have resources that can assist them in getting back up and staying on their feet long enough to turn a profit when selling their business. Vesta is that resource.
At Vesta, our Accounting Firm helps evaluate and bolster your business’ true worth so that you don’t sell it for a dollar less than you’ve earned. Our firm develops and helps implement customized Strategy and Accounting plans that will keep your business afloat during the storm and allow you to ride the waves during periods of recovery. Contact the experts at Vesta today to secure your comfort for tomorrow.