Timing the Sale of Your Business

Your reason to sell your business should be proceeded by a quick analysis of your personal and financial goals. Question:

1. Is your business less enjoyable now than it used to be?
2. Has your business become more challenging to manage or to keep going?
3. Has your business taken you away from your family and other personal commitments?
4. Do you lack the drive and capital to move your business to the next level to stay competitive?

If you answered yes to these questions, then it might be the right time to sell.

Careful Planning Is Critical on Timing Your Sale

Regardless of when you sell your business, you need a strategy that addresses these important timing issues:

• Plan Your Exit Timing:
  If retirement is your exit strategy, plan to sell well in advance of your retirement age. Buyers will sense your need to retire and may negotiate a lower sales price.
• Don't Leave Too Late:
  Burnout, boredom or just ready to throw in the towel may begin to show up in your financial statements. Any decline in your financials will lower the value of your goodwill and company value.
• Watch Your Markets:
  A bad time to sell is when a nationally-branded competitor enters your market.
• Watch the Industry Economy:
  Selling in a growing economy brings a higher price than selling is a recession. The best thing to do during a recession or economic slowdown is prep your company to achieve maximum value when the economy turns around.

But wait! Let's not jump too quickly. You must first prep your business to achieve the maximum sales value. We are talking about --

• strengthening your markets
• cleaning up the financial statements
• streamlining operations

We have guides on how to complete a selling prep