SELLING PRIVATELY HELD BUSINESSES


–SINCE 1982–

When is the Best Time to Sell Your Business?

My team members and I are often asked that question. With the understanding that the only person that can answer the question is you because of your unique situation, there are some factors that can align to increase the value and marketability of your business. These factors include:

  • When the business is properly positioned to sell
  • When the market is robust
  • When the time is right for you

Let’s explore these factors in summary fashion:

  • In last month’s eNewsletter, we addressed “positioning” a business in greater detail, but a few attributes include a good management team, diverse customer base, being in an attractive industry, and rising sales and profits. In other words, assuming other factors being equal, your business would be attractive to buyers at a fair market price.
  • We are currently experiencing a Sellers’ Market, which is particularly true in Colorado. There are more buyers than good businesses available to acquire, and acquisition funding is readily available at historically low rates. That notwithstanding, certain industries such as coal mining and some retail sectors are under pressure and may have limited demand, in spite of overall market strength.
  • When the time is right for you, includes a multitude of factors. Are you emotionally ready to transition from what may be your alter ego? Do the after tax proceeds from the sale of your company, coupled with your other investments, and overall finances enable you to retire or move on to the next stage of your career? Is the timing right for your family? For example, do you have three kids in college with significant personal expenses on your radar screen.

Although it would be ideal if all of these factors were to align, in many cases, life issues such as health may come into play. At the FBB Group, we believe that you can make a better decision if you have the facts to enable you to determine what is best for your situation. We can provide you with a value of your business and share with you information about current market conditions. Feel free to contact us for a confidential, no obligation consultation.

(originally published in the February 2020 eNewsletter)