Baby boomers, a generation that is said to own more than half of all U.S. businesses operating today, are reaching retirement age in waves. Most of these aging business owners have the majority of their wealth tied up in their business. And most of those who own privately held businesses don’t know what they are worth.
“Effectively planning for retirement is difficult, if not impossible, without understanding the true value of a business as an asset,” says Sean R. Saari, a partner at Skoda Minotti. “Without a solid understanding of the value of their business, owners may be making a lifealtering decision about how and when to retire without having all the necessary information. The most important number may be missing in that analysis if the value of the business is not known.”
Smart Business spoke with Saari about the importance of a business valuation in the retirement equation. Click here to continue reading the interview.