When Is the Right Time to Sell My Business?

By Alan Olsen

Do you own a business? Are you looking to cash out, move on and start something new? Perhaps you’re ready to retire and enjoy all the fruits of your labors and smell the roses, so-to-speak. Maybe your business isn’t producing the way you’d like and you’re just ready to get out. Or maybe you feel you’ve done all you can and it’s time to turn it over to someone else. Whatever the reason and whatever the situation, almost all business owners consider selling their business at some point. That leads to the next and likely the most obvious question: “How do I know when it’s the right time to sell my business?”

What’s Your Current Condition?

There are many ways to go about answering this question, and each situation is unique so the answers will be different for everyone. However, there some factors or conditions that are strong indicators that it’s the right time to sell. Each business owner will have to be able to look at his or her current circumstances, weigh his or her options then consider these three important conditions:

  • Do you have a legitimate or compelling reason to sell your business right now?
  • Are you at least fairly confident, that you will meet your objectives or purposes by selling your business now?
  • Are you ready to give up ownership and are you psychologically and emotionally prepared to let go and allow someone else to take control of your business?

A Reason to Sell

Sometimes a business owner ends up in a position where he or she has to sell. However, if you are not in a position of being forced to sell then you should have a compelling or legitimate reason to sell. For example, you could be interested in selling because of business reasons, investment reasons or even personal reasons. All of these can be legitimate. If you don’t have any real objective then you might want to consider holding off on a sale.

Confident You Will Meet Your Objectives

Business owners can have many different reasons to sell their companies. Whatever the reason, if you are considering selling your business then you need to determine if selling the business now will allow you to achieve those objectives and purposes. If it won’t then you probably shouldn’t move forward with a sell.

Mentally and Emotionally Prepared

This really comes down to each owner and there individual circumstances. If the owner is a single individual then he or she has to come to grips with relinquishing ownership and allowing someone else to take control. This can be very difficult for some business owners and therefore if you find that you aren’t ready to give up ownership then it might not be the best time to sell.

GROCO Can Help

All three of these are very important questions that any business owner needs to ask him or herself if he or she is considering selling a business. Answering these questions honestly and openly can help you determine whether or not it’s the right time to sell. However, there are many other detailed factors that come into play when answering these questions. Therefore, if you’re considering selling your business then now is definitely a good time to meet with our team at GROCO. We offer expertise in wealth management, tax preparation, accounting, consulting, business valuations and acquisitions. We can help you weigh these questions and answer them effectively. Please contact us today for help. Call to learn how we can help you. 1-877-CPA 2006




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