Almost every entrepreneur has at least once thought of selling their business.
When is the right time to sell your business from the seller’s point of view?
Once you understand that you have the desire to sell the business, then this is the best time to do it.When is the best time to sell a business from the buyer’s point of view?
This can be determined by the following criteria:
- Your business already has a good business history.
- You have an established network of suppliers/buyers/chain of customers.
- Documentation is in excellent condition.
- Satisfactory financial position.
- Your sales are growing.
The best time to sell a business: the formula
An approximate formula for calculating when to sell a business will look something like this: profit growth in comparison with the return on marketing + the dynamics of growth in the number of jobs and production volumes. The period when this ratio is in balance or slightly decreases will be the optimal time to sell the business. At the same time, the valuation of the business should be based on current financial indicators.
So, when is the right time to sell your business?
Take advantage of the maximum opportunity for a profitable sale. Planning is key in determining the right time to sell, and determining the value of your business through a valuation is a critical step. When your preparation and strategy foresee a time to sell your company in the near term, finding an experienced advisor to guide you through the process is key.
If you want to sell your business, make sure it is in satisfactory condition. It is safe to say that the process of selling a ready-made business is not an unthinkable task. You just need to approach this issue responsibly and carefully.
"Finding an experienced advisor to guide you through the process is key."
Reach out if I can be of assistance.
Steve Niehaus, MBA, CBI, CM&AP