Probably the hardest decision is deciding when the time is right to sell. Obviously, that is a deeply personal decision, but we can offer some insights. There is no doubt that, from a financial perspective, the best time to sell your business is when there is an active market of buyers for businesses like yours and when your business is attractive to the marketplace. On the other hand, business owners are more likely to consider selling when other factors influence them – personal strains, capital investment requirements or negative trends within the business or industry.
In addition, it is not uncommon for a business owner to reject offers for his business, solicited or unsolicited, when they are only a bit less than the owner hopes and expects to receive for his business, only to find only much lower offers when the owner actually has to sell.
We recommend an annual process of reevaluating your objectives, understanding the marketplace and updating your plans so that you are in a position to make an informed decision and move quickly when the time is right to sell.