Buy low and sell high, as the saying goes. But selling a business is not the same as trading a stock. It’s more complicated, doesn’t transact in an instant and transition may require you to stay involved long after the sale. To ensure that the time is right, consider the following tips.
When You Can Get Top Dollar
If a business has a long history of being profitable and you can prove it, then it may be a good time to sell. It’s also good to anticipate any doubts that potential buyers may have, and be ready to answer such with confidence. Selling a business is not quite like selling real estate, where you can research comparable sales and set price accordingly. You’ll have to give it serious thought and be able to explain the reasons for your asking price.
When You Can Stand Behind Operations
If assets like equipment and property are part of the sale, ensure they are well-maintained and in good working order before you put your operations on the market. When potential buyers see that things are in good order, they’re more likely to buy and pay a fair amount. Along these lines, it’s good to keep employee morale high, especially if the same persons will continue working under a new business owner. A positive worker attitude is an indicator of a healthy company, and such will be clear to any who tour your facilities. It’s also a good idea to keep communication about potential sales under wraps until such is complete or until key people need to know about it.
When the Market is Ready
Is your industry growing and your business following suit? When you’re fortunate enough to have a share in a market disruption or period of rapid growth, it can be very attractive for possible buyers. Selling a business can bring suitors for both its past accomplishments but also for its future potential. If the market is especially hot, you may find interested persons coming to you.
When You Are Ready
If you’ve started a new endeavor, stashed away enough for retirement or are simply done with this chapter of your career, it’s also a good time to close shop. It’s good to stay inventive and sometimes this requires a fresh start.
Although selling a business isn’t easy, there’s really no risk in trying. When the right buyer comes along and the transaction is finalized, you’ll be able to look back at past years with a fresh perspective and enjoy wherever your new path leads you.