Updated: Feb 27
No matter the reason for setting up your business, sometimes you might think of selling it or plan for succession. That is when the question of when you should sell your business inevitably comes up. You start asking yourself if that is the right time to sell your business. Let’s find out.
The Right Time to Sell Your Business
The answer to the question of when is the right time to sell your business can be split into two in order to effectively answer it.
It is the right time to sell your business if:
You’re offered a partnership or merger and acquisition opportunity.
Your industry is growing more obsolete and you don’t have the energy to re-invent the business.
You’re keen to explore new and different markets.
The business has grown beyond your expectations and you can’t keep up with the growth.
You have other businesses
The business is in high demand
It’s also a prime time to sell your business if:
You’re no longer excited by the work and you want to try something new.
You’re burnout and don’t have the drive to implement new strategies and seek out innovative ways to beat the competition. Selling the business can offer the means and the time to spend more time doing something more fulfilling.
You’re ready for retirement
Your health is failing and you can’t run the business
Your marital situation is forcing you by legal action to divest.
You now know when to sell your business, let’s talk about the timing of the business sale, as this affects your sale outcome.
Timing the Sale of Your Business
Timing is everything when seeking to maximise business sale value. You will receive your best offers when your business is at performing at its best, with a solid recurring client base proving its profitability to prospective buyers. You can prepare your business for sale by increasing and expanding your customer base, increasing the business profits, gaining more market share, improving your business' financial position, and strengthening your reputation, plus many more levers. Also, keep a close eye on your industry observing trends and changes.
Time to Avoid Selling Your Business
Knowing when to sell your business and when not to can make all the difference in your preparation and selling experience. Here are times you will want to avoid selling your business:
Times when the economy is in distress
When your industry is about to be hit, for example by a tax rise
During times of economic instability
When there is a decline in trade because of international politics for example the war in Ukraine.
When getting access to funding is difficult
Get the Help You Need
If you’re planning to sell your business in Sydney and require the services of an M&A professional, Catheryn Wright is recognised as Sydney’s leading business sales broker. Her in-depth knowledge of the business sales in many sectors has allowed her to develop systems and processes that ensure smooth transitions of practice ownership, while delivering great value. If you are a business owner looking to divest your business or or a professional seeking the right acquisition, contact Catheryn Wright to provide the right advice with diverse opportunities and always confidentially protect your commercial interests.