When Is It The Right Time To Sell?

Most business owners contemplate selling their business at some point in time. So how do you know when it is the right time to sell? Here are just a few common indicators:

• Owner's or Key Employee's Health Problems
• Owner's "Burnout"
• Seeking To Retire (Note: It is usually best to start the sale process 1-3 years prior to the date you wish to retire fully.
• Business Has Gotten To Big For The Owner's Comfort Level
• Want To "Take The Chips Off The Table", But Still Want To Work For Another 1 to 5+ years
• Get Estate In Order
• Under Capitalized
• Do Not Want To Invest Additional Capital Into The Business
• Staff/Management Problems
• Largest Customer Is Having Financial Difficulty
• Changing Technology
• Lease Is Expiring And Do Not Want To Renew For Additional Term
• Business Must Relocate Due To Road Expansion Or Lease Expiration
• Children Do Not Want To OR Are Not Capable Of Running The Business
• Banks Unwilling To Renew Credit Lines
• Patents Will Expire In Next 3 -5 Years
• Want To Cash Out And Go Fishing Or Play Golf

Regardless of the reason for selling, an orderly transition to a new owner must be implemented. It is best to start the sale process one-to-three years prior to your final separation from the business. This strategy will make your business much more valuable to a buyer, when compared to owners who just want to sell and walk away.