Friends,
We wanted to share a few of our thoughts with you on the timing of selling a business. The work you and others have done to build a successful business comes to fruition with the right timing for selling your business. When you decide to sell is critical as it could affect the conditions of the sale, such as price, future ownership makeup, and the number of offers you receive.
Some of the essential factors when deciding to sell your business are the following:
- Market Timing:
- Timing a business sale is like timing the stock market; it’s risky and doesn’t always yield a positive benefit.
- Thinking that predictions of better economic conditions could yield a better offer might not always be true.
- Economic Conditions:
- Stability or growth in the industry could help assuage buyers' concerns about buying at the right time.
- Economic and market conditions will affect the sale (interest rates, credit markets, the M&A cycle, etc.) and must be considered.
- The Hesitation Factor:
- Waiting without good reason to sell can bring uncertainties, deteriorating market conditions, and more competition, thus devaluing a business’s market value.
If you are considering selling your business or have questions, please reach out!
Andrew
Source: The Timing Trap: When is the Right Time to Sell Your Business? - ACT Capital Advisors