I want to retire but don't have anyone in my family to take over my business, so I will have to sell it. How do I do that?

Perhaps the first thing you should do if you want to sell your business is consult an accountant or lawyer regarding the tax and estate planning implications of sale. If you want to maximize the eventual sale to fund your retirement, you must ensure that it is a good business with some value. Then find a lawyer or consultant who specializes in mergers and acquisitions to advise you on what is required.

Selling a business can be complicated, especially if you need to maximize return. There are several ways to sell a business, such as using business brokers, canvassing competitors, contacting industry consolidators and presenting yourself as a potential acquisition target. But each is different and requires differing amounts of involvement by the business owner.

One thing to keep in mind when considering the sale of your business is timing. As with most sales situations, if you are in a hurry, you may not realize the return you want. Just as is the case with selling a house, the time you take to improve the property pays off in a higher sale price.

One way to improve the ""property"" is to put yourself in the buyer’s place, recognize his or her needs and then shape your business to fit those needs. Usually, buyers of businesses are concerned with the following:

• Business valuation, which can be determined through several different accounting methods, such as comparable transactions or discounted cash flow.
• Financing mechanisms such as share swaps, or shares and cash, that allow them to buy the business.
• Risk factors, which are elements of investigation that go into any investment. Keep in mind that buyers are really investors. These factors could include growth potential, industry conditions, operational problems and so on.
• Integration of the new owners with the existing business.

To find a buyer, most sellers first put out the word through their circle of acquaintances within the industry and consult advisors such as accountants and lawyers, who often keep an eye out for businesses for sale. They also advise industry associations that they are interested in selling, and occasionally engage a business broker.