Once upon a time, a smart individual started a company. Now that person is the proud owner of a business that has become a living, breathing entity. One that’s a force to be reckoned with in its industry. One that continues to establish itself as an enterprise capable of growth, agility and profitability.
But now it’s time for that smart person to move on.
For some, that story may seem like somewhat of a tearjerker. And yes, all entrepreneurs who care about their businesses, feel the toughness of the situation. But selling a business can also be a wonderful adventure. We know that too because we’re all former business owners that understand the importance of growth in business, and how a sale can ensure the continued upward trajectory of a business, even if we’re not at the helm.
So, if you’re in the latter group, and you’re thinking of selling your company, here are some signs to reference, that each confirm that it might be time to sell your business:
The best time to sell your business is when you’re ready
There are a number of factors that determine your readiness – are you on the verge of retirement? Do you have other priorities on which you would like to focus? Maybe grown the size or value of the company to a point where you just want to take some chips off the table. If any of these are on your mind, and potentially diverting your focus from your business, it may be time to implement the steps to exit.
When all is said and done, though, you’ll know when you’re ready. And a sale can make it possible to move on with confidence.
The best time to sell your business is when the market is hot
If you’re the savvy businessperson we suspect you are, it’s likely that through running your business masterfully, with a modicum of frugality, it’s actually increased in value – definitely reputation.
This means that other entrepreneurs may be looking to acquire attractive businesses like. And with all eyes on your business, in a sellers’ market, you’re essentially a hot commodity. So, if you’ve done the work, crunched the numbers and come out at a solid valuation that’ll set you up for a golden future, then sell, sell, sell.
The best time to sell your business is when someone wants it
Whether you’re growing at a fast or slow but steady pace there may come a time when someone will want to buy your business from you. Whether you were thinking of selling or just had another company or private equity firm knock on your door, selling now could be a good thing.
Well, if you were already considering a sale and one or more potential acquirers contact you, getting a transaction done in a hot market can enable you to diversify your wealth now rather than at a later date. Alternatively, if you have been approached before you were thinking of selling there are a number of ways you can take some money off the table today, gain access to additional resources and still be able to maintain control of your business to see it through its next stage of growth.
Like we said, there could be many a reason why you’d be looking to sell your business. We think, though, in summary, that selling your business when you are ready or the market is hot is the best way to gain peace of mind about your future – it’s as simple as that.
And when you are, Destined is your business exit planning advisor, here to take the journey with you.
Click here to find out more about our sell-side expertise.