Importance of Timing in Business Sales
There will come a time when you would want to exit and sell your business. Timing in business sales is important. It is always crucial that you get everything right. If you do not, you might sell your business on the cheap. If you are looking to buy a business, there are things that you should look out for before splashing the cash. These things give you the heads up about what the business is really worth. In that vein, you pay exactly what the business is worth.
When is it the right time to buy or sell a business?
There is never a right time to sell. There is never a right time to buy. But you can prepare yourself towards a sale by ticking some boxes.
- Firstly, you must be prepared up for the sale mentally.
- Secondly, you must believe that you can find a buyer for your business or that you can come up with the money.
- Thirdly, you need to ask yourself if you are psychologically ready to let go of your business or acquire one by covering all the grey areas.
1. Be prepared for the sale mentally
Any serious-minded person who wants to sell his business needs time to get everything in place for an eventual sale; you just do not wake up one day and decide you want to sell your business. You will never get any eventual takers, if you do not straighten out your priorities first. If you want to buy a business, there are signs that you look out for. These signs tell you that the seller is serious and ready to sell. Furthermore, you are rest assured that you are investing in a business that is destined for a downfall.
2. Be ready to find a buyer
If you want to time the sell off your business, you need to get your financial house in order. There is no one that would whip out money and pay for a business without finding out how healthy the books are. When you do this, you prop yourself in a good position to attract a sizable sum for your business. In addition, it helps you see which areas require your attention and financial treatment. Take care of your financial load if you want buyers to feel secure about what they are getting into. Every buyer knows that the timing is always perfect when a business is turning a healthy profit.
3. Be prepared to let go of your business or acquire one
If you want to make your business more attractive, you need to take stock of the assets that you have. If you can strengthen your balance sheets with assets, you can dispose of your business quickly. If you see someone looking to sell his business alongside substantial assets, it is a strong signal for you to buy if you can.
About The Author
Alam Qureshi is a Certified Business Intermediary (CBI), Certified M&A Professional and Broker of Record at ProClient Brokers Inc., Brokerage. He helps business owners learn how to sell a business so they can get the maximum value for their company. call us 416 364 5550 or CONTACT US to get in touch.
Date modified: 7-17-2019