Time to Sell Business? What factors influence your time to sell

The selling price of a business is influenced both by the external economic forces and the internal financial performances of the business. These are the factors that should tell you whether to put your firm on the market or to hold back. With over 700,000 businesses being sold each year, it is important to take your time when it comes to the sale. If the timing is wrong, you will not be able to sell business at the best price. Your negotiating power will be reduced. In this post, we will focus on the three factors you should pay close attention to before you sell business.

Performance history of the company

The most important factor in determining how much to sell business is probably the financial performance and the history of the firm in question. If you are a business owner who chooses to sell your company after several years of unswerving growth, you will not have any trouble commanding a higher price. On the other hand, if your business has not been performing well in the past year or two, even if your business’ niche is booming, you will have trouble selling the business at a good price. The best time to sell business at a good profit is when it is performing well

Business environment

Another important factor that will affect the cost of your business is the state of the business environment your company operates in. If the industry your business operates in is experiencing a downturn, you will have trouble getting the best price for it. If you can, delay the sale and sell business when the industry gets into a more robust cycle. At this time, you will be able to command a better deal.

However, if you are not able to hold on within the tide of the turmoil, it is important to work with a reliable business broker San Diego. The broker will help find the best buyer who will offer the best price for your company before the industry deteriorates any further.

Stock market

The stock market matters a lot. When planning to sell business, it is important that you analyze the stock market keenly. The stock market trends and averages not only reflect on the health of national economy but also on projected market conditions. The perceived wellbeing of the economy has a huge part to play on capital appropriations, contraction moves, service and product introduction as well as the expansion decisions of corporates. The nature of the stock market is what will determine if you will sell business at a profit or loss.

There are many more factors that ought to be considered in the sale of a business. The important thing to do is to get the right professional help. You need to work with a lawyer, business valuation expert and a business broker San Diego. The experts will advise you accordingly and ensure you make informed choices and get the best results as you sell business.

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process