Business Owner: My business is starting to recover after the economic downturn.
There is no single answer to this question “Do I sell now.” Many business brokers are reporting that their sales are up this year. This swing from low sales to higher sales is not necessarily based on greatly improved business-for-sale values. Instead the brokers report that the improved sales are because owners are deciding to reduce the sale price and take lesser offers. It is time to get out of the business.
Each entrepreneur must decide based on their own unique factors. A business broker can help with this critical decision.
- How many years of steady or, preferably growing, sales and profits (cash to owner) have you had? Three strong years at a minimum will net you the best value for your business.
- Is the business well positioned in the market place for continued growth and solid operation practices?
- Do you, the owner, have to sell?
- Are you psychologically ready to sell?
- Is the income from the expected sale going to be enough to sustain (or help to sustain) your next life experience?
We could add more to this list but, this gives you the concept and these really are the critical points to consider.
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