So you’ve built a business, taken it to new heights, and now you’re looking to get out of the game. But when is the best time to sell your business?
The good news is that you don’t have to make snap decisions; there are some things you can do in advance to put yourself in the best position possible before putting your company up for sale.
Of course, there’s no magic formula guaranteeing an optimal outcome when selling a business. Every transaction is different, but here are five tips that will help you determine when’s the perfect time to sell your business.
1) Get organized – The first important thing when thinking about selling a business is getting organized. Gather all your financial data, including company tax returns and profit-and-loss statements for the past three years. This will give a potential buyer a clear idea of how your business is performing financially.
2) Consider market conditions – When you’re trying to sell a business, you have to consider the current state of the economy, both in your industry and regionally. It’s unlikely that someone looking for an investment property would be interested in buying during an economic downturn or recession. You also need to take into account other factors like interest rates and consumer confidence. For example, if interest rates are at their lowest point in decades, it might make sense to wait until they go up again before selling; this will help maximize the value of your business.
3) Don’t be afraid to seek professional help – While this is definitely something you should consider, it doesn’t mean that selling your business has to become a long and complicated process. A number of businesses exist which can take care of the whole sell-a-business transaction for you – like MBC Group. These companies have years of experience in finding buyers for small and medium-sized businesses.
4) Know when to let go – You don’t want to get caught up in a bidding war. If the price starts going up every time someone else makes an offer on your company, there’s a chance you’re going to make less money than you would have had if you sold it before the offers began to go up. On the flip side, you also don’t want to sell your business for less than it’s worth because you’re in a rush to get out of the game.
5) Make sure everything is ready – The more time you put into preparing for a sale, the easier your life will be during the process and afterwards when you’ve got a little extra cash in your pocket. If there are legal issues surrounding your business, make sure they’re settled or resolved before putting it on the market. You should also have any assets which need to be included with the sale taken care of beforehand.