When Is The Optimum Time To Sell A Company

By Author: Donny Jenkins
Total Articles: 202
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Deciding when to sell your company is not a straight forward process. An entrepreneur might say, "When I am Sixty five, I will retire and sell the business." Regrettably, there are many business owners that never make it to Sixty five and have to sell their company long before they or their business are ready.

Age-Based Selling

Basing your decision upon selling when you are a certain age can drastically affect the price that you get for the business.

Consider this scenario. A small company owner made the decision she wanted to sell after 30 years of working the woman's business. Sadly, at 25 years, she had health issues and battled to work in her own business for the following 5 years. Slowly the income declined because she physically could not guide the business and her desire to run the company waned. Sadly, at the Thirty year mark, the woman's business had a very little worth and wound up just shutting the business after 30 years.

Had she prepared for her exit, she would have seen the signs and decided to market after Twenty five years instead of waiting till 3 decades when the company had no value.

Unfortunately, ...
... nobody knows what will happen the next day and having an agenda for selling will allow you to make a quick choice to sell before a company has run out of business.

An agenda for Promoting Your Business

To be able to maximize the product sales price of your company, here are 5 things you can do to organize.

Decide what "triggers" you to market? Every business has a life cycle. Preferably to sell your business for the greatest price, you will need to sell once the business is in the peak of their life cycle. This could be when business people say, "I 'm making more money that I have ever created." It's also the time whenever most owners are loving their businesses probably the most. This is the time to sell that will maximize the selling price. In the event that building your company to sell for the maximum prices are important to you, then you may consider this strategy.

Triggers that demonstrate you are in the peak of the life cycle consist of:

Few rivals
Thriving economic market
Highest profits
Fast growth
Ready your business just like you were going to sell tomorrow. Once you recognize the actual trigger and decide to sell, you'll need three to five many years of tax returns. If you haven't been keeping "clean" books you do not have time to clean them up. By "clean" publications I mean getting rid of all non-essential write-offs, such as the family trip in order to France each year to order new services. This can reduce the value of your company and to maximize your selling price, this needs to be eliminated.

selling a business fast