Like many things in life, timing can be everything when it comes to selling your company. Every day more and more baby-boomers are now reaching retirement age. Soon, the market will likely be flooded with companies seeking to sell.
According to a 2016 survey of business brokers, 54% plan to exit in the next ten years. We may be on the verge of a massive wave of businesses hitting the market. Getting out in front of that wave could be in your best interests. Now very well may be the time to sell.
Many business owners want to sell their business to fund their dream retirement, but don’t know where to start.
I’ve used these 5 Critical Questions to help my clients prepare and start increasing their business value.
Are You Suffering from Burnout?
One factor to consider when determining the right time to sell your company is how you are, and whether the pressures of entrepreneurship and life are affecting your effectiveness as a business owner. If you’ve been running your business for many years, it is quite possible that you are suffering from burnout. This issue is remarkably common with business owners and it is also very dangerous. Owners suffering from burnout don’t invest as much of themselves and their creative energy into their businesses, and that has a range of implications.
Everything from losing customers to failing to keep up with the competition are all possibilities when an owner feels ready to throw in the towel. The result is that owners, through poor decisions and inaction, can inadvertently decrease the value of their businesses. Combine this reality with the fact that a huge number of businesses may soon be flooding the market and selling may start to look more and more attractive.
Jump into a Strong Economy
Another factor to consider when deciding when the time is right for selling your business is the strength of the economy. A strong economy means that new and unexpected competitors may soon enter the picture. It is difficult to predict how the marketplace may change in the coming years, but a strong economy means more opportunities for existing businesses and the potential for greater competition.
Interest rates have remained at historic lows and that could help you sell your business. Working with an experienced merger and acquisition advisor, like EastWind Business Solutions, is one way to test the waters. You may determine that now is the perfect time to sell your business.
Many factors are involved in selling your business and influence when and how you approach such a sale. A skilled M&A advisor can help you look at the overall picture, as well as your unique situation, and determine when it is the right time to sell.