When’s The Right Time To Sell?

Today, we’ll take a quick look at just a few things you might consider when you are ready to make an exit.

Financial Health

The financial health of your business is one of the top influencing factors on time to sell. While it’s possible to sell a struggling business, you’ll be most likely to attract the most buyers and get top dollar when your business is growing and profitable.

Market Conditions

Next, consider the market conditions. Look at the economy as a whole, but also dive down into your industry. When market signs are favorable, you’ll attract more buyers. Keep in mind that just because your market is down now does not mean that you are not poised for growth, but you’ll need to be able to show how you’ll weather a lull in activities.

Personal Goals

Your personal goals are one of the most important things to keep in mind as you choose to sell your business. If you’re ready to retire, start something new, or need to tend to a personal matter, such as a health condition, that makes it favorable to sell, these are all valid reasons to offer your business as someone else’s new opportunity.

Exit Strategy

This is simply the process by which you’ll release the business over to someone else’s care and management. Think about how you want to sell your business and the type of buyer you think would be most successful in your niche. Your broker can help you put a well-thought-out exit strategy in place to streamline the selling process.

Signs It Might Be Time

A few strong indicators that selling might make sense in the near future include:

• Your business is at peak profitability – there’s growth potential for the right buyer.

• You have an outstanding management team – these individuals can help operate the business as new ownership settles in.

• You receive unsolicited offers – if you’re getting unsolicited offers, you might see lots of competition when you sell.
  
  

Ultimately, there is no right or wrong answer as to when it’s time to sell your business. But if the thought is fluttering around your head, use your best business sense and take the advice of Kenny Rogers: Know when to hold ‘em. Know when to fold ‘em. Know when to walk away.

If you’re ready to sell your East Tennessee or Nashville business, contact First Choice Business Brokers today. We are the world’s authority in business sales, and we can help you make your move at just the right time.