Thinking about whether or not you are ready to exit is an important question. It’s something that every business owner will have to address at some point. Importantly, you don’t want to wait until the 11th hour to prepare to sell your business. There are far too many pieces in this particular puzzle to wait until the last minute. You’ll want to begin the process sooner by asking yourself some key questions.

Determining when it’s finally the right time to sell can be a tricky proposition. If you are thinking about selling your business, one of the best steps you can take is to contact a business broker. A good business broker will have years, or even decades, of proven experience under his or her belt. He or she will be able to guide you through the process of determining what you need to do in order to get your business ready to sell.

One major reason you should contact a business broker long before you think you might want to sell is that you never know when the right time to sell may arise. Market forces may change, unexpected events like a large competitor entering your area, or a range of other factors could all lead you to the conclusion that now, and not later, is the time to sell.

Business acquisitions are red hot, and all kinds of businesses are being snapped up. Some people are under the impression that only large businesses are being acquired, but this is far from the reality of the situation. It would surprise many to learn that so much of the “action” is, in fact, small businesses buying other small businesses.

In his Forbes article, “Take Advantage of the Golden Age of Business Acquisitions,” author Christopher Hurn explores the true state of the “acquisitions game.” His conclusions are quite interesting. In Hurn’s opinion, there has never been a more active time in the realm of business acquisitions.

The value of a business is based on the theory of substitution. Suppose an interested party has "X" number of dollars at his disposal. He could use that money to buy a business, invest in publically traded stocks, stuff the money under his mattress, or do any number of things with it. Or he could do nothing at all. As a potential investment, how does buying your business compare to all the buyer's other options?

If you're considering divesting in the next five years, getting an opinion of value or valuation is a good starting point. The valuation will compare your business to others in the same industry and size of company that are for sale or that have sold in the past. Ask your broker for a "SWOT" analysis to learn the strengths, weaknesses, opportunities, and threats that make your positioning unique. The good news is that you can take time to address needed changes and insufficiencies to make your business stronger and when the time is right to sell. 

A valuation is a small investment that can reveal how to "stage" your business for sale. Contact Thrive Acquisition today to request a valuation for your business.

©Copyright Kathy DeVries, Thrive Acquisition 2020

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