Is it The Right Time to Sell My Business?
You might have heard about the expected surge of businesses going on the market as retiring baby boomers seek to sell. Does that mean that now is the optimal time for everyone to sell? This is a complex question. Let’s take a close look at some of the top issues to consider when you’re contemplating whether or not to sell now.
How Do External Factors Affect Your Business?
Certain factors are always going to be out of your control. This list includes everything from political instability and global issues like pandemics, to changes in the tax laws. Local and global politics can also influence whether the sale of your business is optimal. We recommend keeping tabs on local news and seeing if you can spot trends that impact your industry. Many businesses do best during stable conditions, but that is not true for all businesses.
Financial and economic trends, of course, will influence whether it’s an ideal time to sell. If there were to be a recession, would you be able to weather the storm? If you doubt your ability to do so, getting out now might make a lot of sense.
How High-Tech Are You?
Another aspect influencing whether or not now is the optimal time to sell ties into technology. Increasingly, the entire world is relying more and more on the use of smartphones, digital currency, automation, and integration of artificial intelligence.
Consider how adeptly your competitors are integrating technology. Are you keeping up with the competition? You will not want to fall too far beyond when it comes to technology, as it can quickly make your business appear outdated and out of touch. Make sure that you retain a high enough level of technological knowhow to meet the expectations of your clients and customers. If you are not up to par, it might be a good idea to hire a consultant in this area.
How Are You Feeling?
Ultimately, the decision about whether the time is right to sell comes down to you. What are your plans for after the sale? If you feel unclear about your next steps, you might want to wait. After all, when you sell your business, you will no longer have a reliable and ongoing source of income.
However, on the other hand, if owning the business is having a negative impact on your health and well-being, now might be the right time to sell. You might not earn as much as you could have if you had waited, but your health is invaluable. Some business owners go years suffering from severe burnout, and it has a profoundly negative effect on their happiness and quality of life.
Is Your Business Really Ready?
Oftentimes, business owners make the leap to put their business up for sale, but the reality is that they are unprepared. It truly pays off to take the time and effort to make your business more attractive to buyers. If your business is in a state of chaos or you’re in a growth downturn, this will negatively impact your earnings.
It takes time to prepare your documentation and financial statements and get your staff and operations in order. We recommend preparing years in advance if you’re looking for ideal results.
Jordon Eckhardt is Business Intermediary of Creative Business Services/CBS-Global.
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