Is Now the Right Time To Sell Your Business?

Have you been thinking about selling your business but just can’t decide if now is the best time? Do you find yourself repeatedly analyzing the economic situation and wishing you had a crystal ball? There are positive signs, and there are negative signs….

If you’re still up in the air and can’t quite decide whether or not to hit the eject button, here are six reasons you might want to consider getting out now.

1. You’re less interested in fighting the good fight

A lot of business owners took Covid in the teeth. If you’ve got your business stabilised and the prospect of possibly having to fight through another coming recession leaves you panic-stricken, it could be time for you to get out.

2. The worst is behind you

Let’s say you were mentally ready to consider selling after 2008, and then Covid hit, and 2020 was bad, and in 2021 and 2022, you made cuts and adjustments, so now you’re starting to see some profit and revenue growth, and we have another looming recession!?With your numbers going in the right direction, now might be just the right time to make your move.

3. The tax man is coming

Governments around the world are looking for money to fund the cost of an ageing population and deficits from Covid, inflation and high-interest rates. At some point, this will mean further increased taxes.

4. Nobody is lucky forever

If you’re lucky enough to be in a business that actually benefits from a bad economy, congratulations... you’ve probably just had the four best years of your business life. But no cycle lasts forever and right now might be a great time to take some chips off the table.

5. The coming glut

As a business owner, demographics are not on your side.?As the baby boomers start to retire in droves, we’re going to have a glut of small businesses coming on the market. That’s great if you’re buying, but if you’re a seller, you may want to avoid the flood and head for higher ground now.

6. The closing window

Now it’s more challenging for private equity companies to raise money, so many firms have had their last successful fundraising round. Many of these are no longer investing. Some boutique private equity firms will make investments in companies that have at least ￡500,000 in profits (larger private equity firms will not go below ￡3 million in EBITDA), so if you’re in the six-figure club, you could get a bidding war going for your business among private equity buyers keen to invest their money before they have to give it back.

Zach Dogar has over 25 years of experience in selling companies, exit strategy planning and negotiating M&A deals.

Book your free, confidential consultation with Zach to discuss the sale of your business

Article source: https://www.etsc.co.uk/selling-a-business/is-now-the-right-time-to-sell-your-business/