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[BUSINESS] · Brazil · 3 sources

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SME owners evaluate business sales and succession for retirement

Owners of small and medium-sized enterprises (SMEs) are increasingly evaluating strategies to exit business operations without closing their companies. This planning process often includes family succession, the hiring of professional management, the introduction of new partners, or the partial or total sale of the business.

For many entrepreneurs, the company represents their primary wealth, income, and professional routine. Unlike traditional employees, business owners often depend on the continued value and continuity of their business to secure their retirement. Effective planning requires defining the business's future, assessing successor readiness, determining company valuation, and organizing financial data.

Paulo Mendonça, an M&A advisor at BuyCo, notes that retirement planning must go beyond personal decisions. In businesses heavily dependent on a founder, an unplanned exit can negatively impact clients, suppliers, staff, and financial stability. Consequently, professionalization or sale are recommended to preserve operations.

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BuyCo · Paulo Mendonça

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