If you are a business owner, you have undoubtedly asked yourself when is the best time – or how will you know when is the right time – to sell your business?
There are a number of factors to consider in making such an important decision, but in my experience working with numerous business owners, you can break the decision down into three fundamental areas.
Are YOU Personally Ready?
Are you really ready to retire to the golf course, or a foreign country, or travel the world, or finally get that boat you’ve always dreamed of, or simply move on and do something else? This can be influenced by age, health, family circumstances, personal finances, and many other factors, but ultimately only you can know if you’re truly ready to sell. In my experience, successful business sellers have a plan for what they will be doing post-sale.
Is Your Business Ready?
If you’re like most business owners, your business might not be totally prepared for a sale. Ensuring that your business is an attractive purchase for a potential buyer takes some planning and preparation – and some time. It can be helpful to work with a business broker or M&A advisor well in advance of your planned exit from the business to find out what buyers are looking for, and what the market value of your business will likely be.
For a complimentary copy of our white paper entitled: “Value Drivers to Maximize the market Value/Selling Price of Your Business” drop me an email at: mertel@lmaallc.com.
What’s Happening in the Global Marketplace?
Is the economy on the upswing, or headed into another recession? Are banks lending money for business acquisitions? Are interest rates high or low? Are they rising, falling, or stable? Are critical commodity prices in your business rising, falling, or stable? These and other factors can have a huge impact on the market value – and even the sale-ability – of your business; and unlike the two previous factors, it is almost entirely out of your control.
The best time to sell a business is when you don’t have to, and you need to consider that as you think about when you might ideally like to sell your business.
If you know of someone who’s thinking of selling or buying a business and who might benefit from a complimentary, confidential, consultation, have them contact me directly at 813.299.7862, or mertel@lmaallc.com
By: Mike Ertel, Transworld M&A Advisors