Mergers and acquisitions have been occurring at a rapid pace over the last year. Yet, this doesn’t necessarily mean it’s the right time to sell a business. Owners will need to consider several factors, from the right time to sell to how the business is doing right now, before making a decision. All of this comes into play when deciding when to sell, as it can make a difference in finding the right buyer or ensuring the sale is completed quickly. Owners should also speak with a professional as soon as they think selling might be a good idea. To get started on the path to selling a business, business owners can use the following information. Is now the right time to sell a business? Read on and find out.
Best Time of the Year to Sell
Is now the right time to sell a business? While there is no perfect time, the best time of the year to start the sales process is during the summer. The summer is when the seller will begin preparing for the sale, from gathering information to preparing a potential buyer list. The end of summer and the beginning of fall is the time to start marketing the business because summer vacations have ended, so everyone is at work and ready to go. During the summer, many people will take vacations, which can delay the sales process. By waiting until the summer has ended, there may be fewer interruptions to slow down an already lengthy process.
Since selling a business can take up to a year to complete, if the business owner gets started during the summer preparing to sell and starts marketing at the end of summer and beginning of fall, the sale should be in the closing phase during the spring. Sellers who are retiring or planning on taking a break before jumping into a new venture will find this is fantastic timing, as they can take a vacation and enjoy the summer months.
How is the Economy Looking Right Now?
Selling a business can take longer when the economy isn’t doing well, and selling a business is much easier when the economy is doing fantastic. Over the last few years, the coronavirus pandemic, inflation, and rising interest rates have significantly impacted the overall economy. Many things are in turmoil right now, leading to an economy doing excellent in some areas but not so well in others. What does that mean for business owners who are ready to sell?
Though the economy seems all over the place right now, it’s a great time to sell a business. Many people are ready to own a company and businesses that would like to merge with smaller organizations to expand. For sellers, this means many buyers are willing to buy. When there are plenty of buyers, not only is it easier to sell the business, it’s easier to get more money, too.
How the Business is Doing
Potential buyers often look for a turn-key business or one that needs little change to start seeing a profit. They may not want to tackle a more significant project, so the current state of the business does make a difference when deciding if it’s time to sell. If the business is bringing in steady profits, has a steady amount of employees, and is ready for a buyer, it will sell much faster.
If the business isn’t doing well now, it may be beneficial to wait a little bit to sell. In the meantime, the seller can see what they can do to improve the state of the business and make it more desirable to potential buyers. If this isn’t possible, buyers may still be interested in the business, but buyers may not be willing to pay as much. Selling right away when the company isn’t doing well could lead to a lower sales price but may be necessary if the owner needs to sell the business quickly.
What the Owner Wants to Do
If the owner is ready to sell, then now is the right time to start thinking about selling the business. Owners may want to retire, get started with a new venture, or switch to something completely different. It doesn’t matter why the owner wants to sell in most cases, just as long as they’re sure it’s the right decision for them. The reason for selling comes down to personal preference and needs, so it’s hard to predict and challenging to know if it’s the right decision. However, if the business is not making money, it may be impossible to sell. Talking to a professional can help owners determine if it’s an excellent time to sell based on what the owner wants to do next and, if so, start helping the owner with the first steps in the sales process.
Talk to Professionals Before Deciding
Business owners must contact a trustworthy business broker if they are ready to sell. A professional understands all of the nuances of determining the right time to sell, so they can provide advice on how to move forward in the sales process or whether it might be a good idea to wait a little before proceeding. Business owners can work with the business broker throughout the sales process, helping ensure everything is done correctly. If the owner needs to do anything before beginning the sales process, the broker can advise them on steps to take.
When a business owner is ready to sell, they will want to make sure the sale goes through quickly yet ensure there are no problems during the sales process. A professional business broker can do this for the seller. The professional will be able to help make sure the business is ready to sell, help find potential buyers, and walk the owner through the entire sales process to make sure nothing is overlooked or missed. They’ll also help the business owner get as much money as possible when selling the business.
Is now a good time to sell a business? That depends on several factors, but it could be the right time. Business owners considering selling their company should contact a business broker today to start talking about this. By working with a broker, business owners can make sure it’s the right time to sell and get the help they need to find the right buyer.