There is a perception that, given the current economic and political uncertainty, now is not necessarily a good time to sell a business, but in fact it’s a great time to exit. Private-equity investors have huge sums of cash to invest and are hungry for acquisitions.
How do I decide what to sell my business for?
Four indications that it might be time to plan an exit strategy for your business (or for you personally).
- You’re on 4 or 5 different medications.
- The company has outgrown your skill set.
- The market might be moving against you.
- A lucrative opportunity presents itself.
When’s the best time to sell a business?
As we mentioned before, the best time to sell your business is when it’s doing well; the financials are trending upwards, sales are booming, the team is strong and demand is high. It can be difficult to walk away when the business is doing so well but that’s the exact time we recommend planning your exit.
When is the best time of year to sell a business?
So assuming that a business is ready to sell, let’s take it one step further and analyze the best time of year to sell a business. I breakdown the sale of the business into four distinct phases; preparation, marketing, buyer selection and closing. Each phase takes approximately three months to complete.
How long does it take to sell a business?
How long will it take to sell my business? The average selling process takes to sell a business is 7 months. Simpler deals close in shorter timeframes and more complex deals take longer, ranging from 3-12 months. A business valuation should take a few days and in that process you may decide on an exit strategy to prep your business for sale.
What’s the best price to sell your business?
Smaller businesses (under $3M in price) generally average 2-3 times profit, medium-size businesses ($3m to $20m) can bring in 3-5 times the profit and large businesses ($20m and over) will often see 5-10 times the profit. 2. Prepare your financials with your accountant
What to consider when selling a small business?
Expecting to get top dollar for a business that generates little or no profit is simply using bad business sense. Consider your industry, similar businesses, the economy and your marketplace when pricing your business to sell. On the other hand, a business that does not generate profits may do well with a going-out-of-business sale.
