Is Now the Right Time to Start Selling A Business ?

Is now the right time to start thinking of selling a business?  The answer is not a simple yes or no because there are factors to consider.  One factor is the reason for selling a business in the first place.  This is why it is at your best interest to assess your reasons first,  before moving forward with the selling.  Is it part of your exit strategy? – To cash in and start your retirement?  Do you want to embark on a different business venture?  Or you just think you need a break and selling just seems like the best move. Or you have acquired too much personal debt that you need to liquidate your assets. Your reasons for selling will somehow dictate the business’ selling price you will be happy with, regardless of its true value.  It will also determine  the selling time frame.

Right timing when in selling a business  is also determined by the current economy.  How many investors actually trying to  acquire a business?  What is the average market price that they find reasonable? Another factor is whether your business is ready for the market.  Selling a business takes certain preparations in order to be able to sell it at the right price.  Business valuation is not simple either. But it is possible to improve the value of your business.

These are just a few things you can work out with your business broker. Things such as determining your goals, and evaluating the current status of your company – your product or service, your cash flow, business structure, financials and your current clients.  When selling a business, it is good to be open with the person who will represent you and your business, and that is your business broker.  He or she will be able to market it well if there is open communication. 

Selling a business successfully therefore, is not just about the right timing but whether you sign up with the business broker who is experienced enough to see you through – from initial preparations to the close of the sale.  This means that the business broker is able to assess whether there is a current market for your business at the price you are asking for.  He would be able to direct to the proper valuation companies, prepare marketing strategy plans, prepare contracts and mediate for you.  And most of all, is able to determine which prospective buyers are the right fit for you based on the goals you have set.