When is the Right Time to Sell Your Business
Some thoughts on “when” is the right time”
1. When there is strong demand– immigrants, redundancies, corporate refugees and returning expats are fuelling the market at present and there is a short supply of businesses with genuine potential or proven profits.
2. When the company has peaked–waiting may lower value, the owner can lose energy and enthusiasm, the economy shows few signs of improvement, and new competition or technology could diminish profits.
3. When approached by a “trade buyer”– with sales difficult to build in this recession many companies are looking to grow through acquisition and paying premium prices for businesses that promise synergies and economies of scale.
4. When proper planning has taken place–be aware of the buyers’ concerns and follow the steps in our “10 Commandments”. email us (email@example.com) for your free copy.
5. When you are comfortable with the buyer– deal structure may be more important than price. A sale we are finalizing at present has the seller entering into an employment contract with the buyer – ensuring a smooth transition, retention of clients, less responsibility for the vendor, and he has his “pile of chips” out of the business. A win-win for both parties.
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