Timing The Sale Of Your Business

Timing The Sale Of Your Business

Decision Associates M & A recommends you consider three critical elements in planning the sale of your business.

  1. Is the business in top shape to create the highest value and attract the best buyer?
  2. What is your exit plan and its timing?
  3. What economic cycles will affect the value of your business and the willingness of good buyers to pay a strong price?

Putting all three together is like hitting the Trifecta: Your business is in top shape, you are ready to step back from the business, and the economy is at its peak. You can increase your chance of hitting the Trifecta by diligently working on items 1 and 2 for three or four years ahead of your targeted exit.

As for item 3, it is impossible to predict a peak, but it is possible to identify a window. The key mistake many owners make is trying to hit a peak, missing it and having to wait for another whole cycle.

Each of the three critical elements requires deeper analysis. Decision Associates M & A recommends that you do some homework by looking at transactions in your industry over the last few years. Assess what your trade association economists and market studies are saying about your industry's long term prospects.

Also, we recommend you think about how you want to spend the next six to 10 years. If the answer is, "stay in the game and build this business to the next level," then you do not need to think about this subject. If the answer is, "I don't really want to take myself and my business through the next recession," then think about the timing for going to market.

To learn more about timing the sale of your business, contact Decision Associates M & A.

“We used Decision Associates for strategic planning and found them to be useful in leading conversations and gathering consensus. I found them to be very fair. They had honesty and integrity and helped us reach to a plan that was agreed upon by all.”

~ Lynn Rupp, VP Strategic and Operational Performance
UPMC Hamot

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