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.

“Decision Associates exceeded our expectations, which were very high to start with, and we were pleased with the result of their work and assistance on our strategic plan. They were the right organization at the right time to help our organization become what we need to be in the next few years. They led us in such a way to allow us to move forward, which is not always easy, and accomplish a lot in a short time. The proof is that the strategic plan has been widely acknowledged as being perfect for us with comments coming not just from within, but from the community as well. We will engage them again when we are ready for an update.”

~ John Oliver, President
VisitErie

Subscribe to our Decision Point Newsletter