When is the Right Time to Plan for a Business Sale?
When it comes to commercial business sales San Diego, we don’t just focus on helping you sell fast and at maximum profit. At So-Cal Business Brokers we are committed to educating you so that you always make the most informed choices. One of the biggest questions clients ask us is when is the right time to sell?
The answer to when is the right time to sell is; from day one. Experienced business advisors will recommend that you start with your endgame in mind. This is regardless of whether you want to sell after 5, 10 or 30 years. Although the plan might change over the years, it is wise to plan from the first day. Our in-house business advisors can help with this.
If your plan is to proceed with commercial business sales San Diego in 10 years, here are vital questions you should ask:
- What do you want the size of your business to be by then?
- What kind of sales revenue do you want?
- How many employees do you plan on having by then?
- To whom will you sell the business?
The question on who you will sell the company to is the most important. Most of our clients think they can only sell to new buyers. What they fail to understand is that there are other parties who might be able to purchase their business. The buyer could be an employee, managers, someone from the executive team and even a family member. If you want to sell to someone in your inner circles, providing them with sufficient training will groom them to successfully run the business. You can train them without disclosing your specific intent.
Planning to sell in late years
Most business owners consider commercial business sales San Diego in late years. It is possible to develop an exit strategy in later years. In this situation we highly advise you to contact us for advice. We recommend that you plan at least three years in advance. This is unless there are unavoidable circumstances forcing you to sell such as legal issues.
When planning the sale, you need to consider every monthly income statement and financial records as well as historical documents. Buyers will want to scrutinize these documents. The good news is that our in-house team will help gather all the required documents, clean them up and organize them in a manner that makes your business more attractive to buyers. Remember that we know what buyers are looking for.
The three year mark is the best time to establish strength in your leadership or management of the business. We will help you hire or train a management team to take over most of your responsibilities. This is because buyers don’t want a business that cannot survive in the absence of the owner. We will get you out of the equation.
Schedule a free consultation with us today. We are always happy to answer your questions and help in any way we can.