Selling a business you’ve spent most of your working life to build is one of the most important personal and financial decisions most business owners will ever make, and for that reason, it’s important not to wait too long.
The best time to sell any business is when you don’t need to – not when the owner’s health, or other personal circumstances, or business pressures demand it. When the business is doing well, and has a string of successful years immediately behind it, with the promise of doing as well or better in the coming years, it will attract the most qualified buyers and bring the best price and terms. When it appears that the business is no longer growing and may be headed for a period of declining sales and profits, its selling price will be much lower.
From experience, we recommend that our selling clients begin the process 2-3 years before they believe they will really need to sell the business. While some businesses have sold in as short as six months, the average tends to be closer to a year, with some businesses requiring 2-3 years before finding the right buyer and the right deal. In addition, some business may benefit from making a few changes/improvements to their business to command the best price and terms and it may take from a few months to a year or more to implement those changes.
If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a free, confidential, consultation with us, have them contact me at: email@example.com
By: Mike Ertel, Transworld M&A Advisors