Tory Adair
Timing the sale of your business can be the difference between success and failure. Knowing when to sell is important, but just as important is knowing why you should sell.
At Bristol Group, we make it our passion to help you determine the right time to sell. We help you evaluate the reasons why you should or shouldn’t sell, the value of the company, the process and the timing involved.
Below are eight of the most common, and frankly, the best reasons to sell your company now.
- Take Advantage of a Sellers’ Market: This is really a timing issue. When are the buyers in the market and when do they have cash to spend on companies?This is also important because, just like real estate, the value of businesses go up and down based upon market conditions.
- Retirement: Statistically, this is the most common reason an individual determines it is time to sell. The real question is, do you retire at 55, 60 or 65? Do you have enough money to retire? Is your retirement contingent on the successful sale of the company? It may be that the company needs new blood and new passion, and now is the time to retire.
- You Want to Do Something Different: It may be that you are burned out, or that you are ready for another challenge in life. Many serial entrepreneurs are always looking for the next challenge. This is a valid reason to sell. You need to be careful with this one because it is driven by factors that don’t mean it’s the best time to sell. Wanting to do something different may take some planning and foresight to insure when you should transition the company.
- Health Problems: This reason is generally the one that requires the most skill in making sure you get the full value for the company. Health problems often mean the timing is an issue and long-term planning isn’t an option. Depending upon the issues, you can still get the right terms, conditions, and sale price with some planning and proper execution.
- Industry Roll-Up: If your industry is experiencing consolidation, sometimes called a roll-up, that means valuations are strong, buyers are plentiful, and terms and conditions can be dictated by the seller. This is one of the most opportune times to sell a company. Knowing how to spot this trend and how to take advantage are important factors in determining the sale of the company.
- Partner Disputes: Most partnerships start off well. Somewhere along the way, the skill sets, commitment, communication, and differences begin to cause friction. If you’re having problems with a partner, then selling can be your best option. Options include selling to an outside buyer, or one partner buys the other partner out. Either way, it is a valid reason to sell.
- Competition: Competition exists in the business world — that’s just a fact — and losing out to your competition is no fun. On occasion, a new competitor may come to your market and it may make you re-evaluate you company’s ability to compete. If you have competition in your market that is difficult to overcome, you may find that a sale to your competitor (aka merger) to be very advantageous.
- Other Business to Focus On: For many entrepreneurs, they may have other businesses that require their attention and are more interesting. Once the business is up and running, and many of the entrepreneurial challenges have been met, often an owner wants to sell and move on to the next adventure.
The Bristol Group specializes in helping business owners sell their company. We provide the following services: Business Valuation, Determining the Timing of the Sale, Maximizing Value, Keeping the Process Confidential, Finding the Buyer, Negotiating, and Due Diligence.
Call your local Bristol Group Business Broker, Tory Adair, and see if selling your business makes sense. Call (480) 388-0898, or email tory@bristolgroup.com.