Three essential elements in timing the sale of your business

Timing The Sale of Your Business Glass Timer on Computer Image by Mergers and Acquisitions

At Decision Associates M&A, we recommend that you consider three essential elements in timing the sale of your business.

These include:

  • Is your business in top shape to create the highest value and attract the best buyer?
  • What is your personal timeline and plan for exiting the business?
  • What economic cycles will affect the value of your business and the willingness of good buyers to pay a strong price?

Our mergers and acquisitions experts know that aligning all three together is like hitting the trifecta – that is, your business is in top shape, you are ready to step back from the business and the economy is at its peak. Decision Associates M&A can help you increase your chances of hitting this trifecta for timing the sale of your business.

The process begins with diligent work on items 1 and 2 three or four years ahead of your targeted exit. As for item 3, it is impossible to predict an economic peak, but it is possible to identify a window. The key mistake many owners make is trying to hit a peak, missing it and having to wait for another three- to four-year cycle.

Keep in mind that each of the three critical elements requires deeper analysis. For every client, Decision Associates M&A looks at transactions in your industry over the last few years. We also assess what your trade association economists and market studies are saying about your industry’s long-term prospects.

In addition to this analysis, Decision Associates M&A suggests you consider how you want to spend the next six to 10 years. If the answer is, “stay in the game and build this business to the next level,” then you do not need to think about selling. If the answer is, “I am ready to do something different with my life” or “ I don’t want to be the one to take this business through the next recession” then now is the time to begin preparing to go to market.

To learn more about timing the sale of your business, contact Decision Associates M&A today.