When is The Best Time to Sell My Business?
We are often asked by business owners – When is the best time to sell my business? Unfortunately, the answer is often complicated because there are several factors involved. The simple view is that the best time to sell the business is when you as the owner, the business, and the market for private businesses are all aligned and at a high point – to ensure the best possible exit outcome.
This is very difficult to predict and achieve and often business owners who leave the planning of their sale or exit too late are forced to sell at exactly the wrong time i.e. before the business is ready, before they have sorted their financial arrangements for retirement, or when the markets are at a downturn point.
Market timing (whether you are talking about the stock market, the property cycle or privately held businesses) is always a difficult science, but importantly the critical factor is to be exit or sale ready at all times, so that you can take advantage of opportunities that may arise due to market events or simply, from an unsolicited offer. Businesses that are always sale ready are also much easier to run, less stressful and normally more financially rewarding for the owners.
There are always plenty of viable buyers for well-prepared, well-managed, low risk businesses and so preparation is key.
Personal and family planning is also an important aspect in terms of timing. Many business owners leave exit too late and are forced to sell due to illness or accident. Planning your retirement, financial management, asset protection and estate planning all needs to be part of the exit strategy (and unfortunately takes considerable time and effort).
“Begin with the end in mind” simply means start planning and preparing NOW.
For more information on how our Succession Advisors can help, contact us today and book an obligation-free 30 minute appointment.
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