If you’re sitting on a thriving business, you may be wondering if it’s worth selling. Perhaps you’ve been considering this for a while, or you are interested in changing career fields. No matter what made you decide to sell your business, the most important thing about selling is timing. If you’re desperate to get out of your business immediately, then you can sell whenever you want, but having time to consider will give you the best deal.
When is the best time to sell your business?
- When it’s growing. Timing is everything, and when your business is on an upward trajectory, it’s a great time to sell. When you sell at this point, you can add potential future earnings to the asking price based on how the business will grow over time.
- When the market is favorable. Just like the stock market, the business market waxes and wanes. Sometimes the market is in your favor, while other times, it is not. Some favorable signs of the market are if your business has a high rate of recent transactions, high recent purchase price multiples, higher than average buyer activity, low interest rates, and cheap debt financing.
- When you’re tired of it. Finally, if you’re getting tired of your business, then it’s definitely time to sell. Are you excited to work on your business every day, or are you starting to feel irritable, worn out, and bored? If the job no longer motivates you or you are interested in new passions, then regardless of timing, it’s time to sell.
Selling a business is a big step, And there’s a good and bad time to do it. If your business is growing and thriving, if the market is favorable, or if you are tired of it and ready to do something new, it’s a good time to sell your business.