Are you wondering if it’s time to sell your business? Consider these indicators:
Your Business Trends are Up
It is hard to sell a business when trends are going down. Most buyers don’t want to buy on a downward trend. And if they do, they expect to pay less.
Business Owner Burnout (BOB)
If you don’t look forward to going to work anymore, you may have BOB. BOB (not your uncle) is one of the top reasons businesses go up for sale. Unfortunately when you are sick and tired of your work, profits can suffer, leading to a lower sales price.
You Need Capital to Grow to the Next Level
You have achieved much in your business, but you are at an age where it is too risky to take on more debt to grow the business further.
Business is Very Profitable
Your impressive bottom line may attract a financial buyer looking for a good return on his investment.
Divorce, personal tragedy or illness can understandably impact your professional interests and selling your business may be the right thing to do.
Favorable Market Conditions
Pay attention to conditions that might favor selling. The economy might be red-hot, or you might own a business that is in a high-demand category. Even if you’re not thinking of selling in the immediate future, keep an eye on the market so you can be ready to take advantage of conditions that are favorable to you.
If you are seeing any of these six signs, it just might be time to sell. Here are a couple of tips to keep in mind.
HOT TIP # 1: If you have a high demand business (excellent profits and growing trends) consider having your Mergers and Acquisitions expert run a professional sales process that can generate multiple bidders. A buyer who is aware there are other potential buyers at the table may not only offer a you a better deal, but will be less inclined to find reasons to reduce the price during the due diligence phase.
HOT TIP # 2: The forecast of a glut of “Baby Boomer Businesses” on the market all at once is very real. You will get a better price when there are fewer choices for buyers. You might want to get out before everybody else is trying to do the same.