How to Sell Your Business and Retire

Updated March 2025

At some point, every entrepreneur faces the big decision: when to step away and retire. Whether it’s to spend time with family, focus on your health, or simply enjoy life’s next adventure, the timing is personal. But one thing is certain—preparation is key. Selling your business and transitioning into retirement isn’t always straightforward, especially when it comes to letting go both financially and emotionally. If you’re ready to sell your business and retire, there are a few things you need to do before you head into your golden years.

Are You Ready to Sell Your Business and Retire?

A recent survey revealed that many people consider 63 the ideal age to retire. However, retirement is a deeply personal decision, and knowing the right time to cash in and step away from your business can be challenging. It’s not just about age—factors like your financial goals, health, and personal aspirations all play a role in making this life-changing choice.

Of the factors, financial planning is one of the most significant. When did you begin your 401 (k), IRA or HSA? Are your monthly payments able to compensate for your lifestyle? Do you have dependents that you’ll need to support on your pension, social security checks, or retirement account? Do you qualify for Medicaid in your state? This handy CNN Money calculator estimates how much money you need to save before you can retire. If you’re unsure where to start, it may be smart to enlist the help of an accountant or financial planner.

Find What Your Business Is Worth

Once you’ve run the numbers to tell if you can safely sell your business and retire in the near future, the next step is to prepare your business for sale. Preparation will include a timeline, an exit strategy, and a business valuation from an accredited broker, among other things.

Formal Valuation

First, you’ll need to find out what your business is worth. Contact an appraiser or a business broker, like Sunbelt, to conduct a formal valuation. Appraisers and brokers will use historical data, income statements, tax filings, staff records, and more to prepare your business’ formal valuation. This information is vitally important to prospective buyers. A well-organized company with detailed financial records and skilled staff represents an attractive investment opportunity.

You must obtain a formal business valuation before you make any other decisions. Sometimes, owners may be biased when it comes to determining the worth of their company and are surprised when the appraisal is less than they expected. If your valuation proves that a sale at this time cannot fully fund your retirement, there are things you can do to boost your business’s value. Strategies like expanding your customer base or training a management team to act as leaders after the sale are ways to draw a higher price point.

Exit Strategies

Depending on your needs and/or desires there are a variety of ways to exit your company and your role as an active executive.

• Close and liquidate—the business will cease to exist, and all assets will be liquidized.
• Sell to a Third Party—traditionally the most common way to reap value from your business.
• Be Acquired—larger companies in your industry would absorb your business into their own.

Timeline

Your retirement timeline is based on your financial planning measures, your valuation, and the exit strategy you’re hoping to use. You’ll want to talk to your financial adviser and business broker to work out what your timeline will be to sell your business and retire.

Plan for Your Future

It’s important to plan both financially and emotionally for retirement, no matter what line of work you are in. But as an entrepreneur, walking away from a company you’ve invested most of yourself in can be especially difficult. Take into consideration what you’ll be leaving behind before you sell your business and retire: your daily routine, way of life, and coworkers and friends.

Confronting an uncertain future will make the decision all the more difficult, so plan ahead. Perhaps there were hobbies and activities that you never had time for or places you’ve always wished to visit. Keep yourself busy by enrolling in classes, volunteering in the community, or committing to a new, special project.

Retirement can cause unease or excitement, depending on your situation. If you need help determining when to sell your business and retire, contact your local Sunbelt office for help valuing your business, listing it, and fielding offers. With more Certified Business Intermediaries and business-for-sale listings than any other firm, there’s no reason to go anywhere else.