The Myth of Retirement & Selling Your Business: 3 Thoughts
Like one of Aesop’s fables many of us have maintained a myth about how we will fund our retirement dream as we sell our healthcare business. It is not a myth unique to health care business entrepreneurs, but it is a myth for several reasons:
- The retirement dream for most is not one of playing golf every day or sitting on the front porch and telling children not to play on the lawn. Most entrepreneurs have dreams that are active and often include some continued business-related behavior.
- The proceeds from most transactions in the lower middle market are not substantial enough to support an affluent lifestyle, particularly if the seller has another 20 years or more of expected life. Combined with expenses such as college education for their children make this even more of an issue.
- Successful healthcare business sellers are often sought out to assist others in their entrepreneurial activities, whether healthcare-related or not.
When we work with sellers preparing for their post-transaction future, we often encourage them to be open to many possibilities within their vision of the future. Our retirement dream has changed dramatically as we have redefined the myth, both out of economic reality and the desire to be more active as we age. Besides, if you do retire in your 60s you may have another 7000 days to live a very fulfilling lifestyle.