If you’re thinking about selling your business, but really aren’t sure of whether or not now is the perfect time to do so, you’ll want to pay close attention to all of the inside info we highlight below.
Selling your business is never something you want to take lightly, never a decision you want to make on-the-fly, and certainly not a decision that you want to make under duress or when you’re feeling stressed or overloaded. At the same time, there’s definitely a tendency for entrepreneurs to want to hold on to their businesses longer than they probably should – and many entrepreneurs have lost hundreds of thousands of dollars if not millions or even billions of dollars by doing exactly that.
No pressure though, right?
Here are some tips to help you figure out whether or not it’s the right time to sell your business.
Is my business ready to be sold in the first place?
Professional business brokers recommend that entrepreneurs take at least 12 months to two years to make sure that their businesses are really ready to be sold in the first place, systemizing as much as possible, cementing key employees for the transition period, and making sure that the financial documents reflect the true value of the company itself.
Make sure your business is ready to be sold before you think about putting it on the market.
Are there buyers interested in your business?
Most entrepreneurs are going to start thinking about selling their business AFTER they have already been approached by at least one company or group of investors to buy the business in the first place. If you’re getting people calling you cold about whether or not your company is available, the odds are pretty good that you’ve created something of immense value and there’s definitely a market out there.
If you’re not getting those calls, that doesn’t necessarily mean there is no market for your business. You’ll just have to do your research and due diligence to make sure that your business isn’t going to sit out on the market and lose value over time.
Come up with an exit strategy that makes sense
At the end of the day, there’s always going to be at least a little bit of hesitancy and resistance to selling a company that you own, especially if it’s a company that you built from the ground up from scratch. The emotional attachment is going to be a little bit tough to get rid of no matter what kind of money you get for the business, which is why you want to come up with an exit strategy that allows you to transition out of your ownership role and active position in the company to one that isn’t going to have you feeling seller’s remorse later down the line.