When Is the Right Time to Sell My Business?

When it comes to timing the sale of a company, you'll never know if it's too soon, but you'll know for sure when it's too late. Of course, you don’t want to sell too soon and leave money on the table. However, if you wait too long and sell too late, you can lose any advantages you may have with potential buyers. So, what’s the answer? There isn’t one answer. There are multiple factors to consider, and some may be more important than others depending on the business and its circumstances. Every business is different, and every industry brings its own challenges and benefits. But there are some steps you can take to put yourself in the best position to sell.

The first thing you need to do is understand that selling a business takes time. Most companies sell in a timeframe of anywhere between six and 12 months from going to market. There is quite a bit of detail that goes into the process, and being adequately prepared as soon as possible will enable you to be ready to roll when the market is favorable.

The bottom line is that you can never be too prepared. It is always wise to jump on the due diligence process so that you can be organized whenever you choose to sell. If you are always sale-ready, it gives you a significant advantage. Not only does it show potential buyers that you are serious about selling, but it also indicates that the business is well run. Many business owners make the mistake of waiting to sell because they think the company isn’t ready to sell. If the ideal buyer comes along and you are NOT sale-ready, you could miss out on the deal of a lifetime.

Discover the Value of Your Company with Benchmark International.

The reality is that the best time to sell your business is when you do not have to. Yes, it can be hard to imagine selling your company when it is thriving. But that’s often the best time to do it. No buyer wants a business that isn’t doing well. If you can show that you have strong growth potential, investors will be willing to pay more. Going to market when times are good always makes more sense than selling when times are bad.

Did you know that…

• 80-90% of business owners have all their wealth tied up in their companies
• On average, selling a small- to mid-size business takes six to 12 months
• Over the next 10 to 15 years, more than roughly 12 million businesses will be sold
• Only 20-30% of businesses that will end up on the market will actually sell
• Around half of all business owners lack a proper exit planning strategy
• Only about 30% of family-owned businesses survive the second generation
• 50% of agreed-upon deals never close because of the inability to get through the due diligence process
• It is often best to start planning for the sale of your business 18 months in advance

Of course, sometimes you may find yourself in a situation where you must sell to save the business. If you can find the right buyers who can swoop in and turn things around based on their resources and expertise, it may be your only option. You may not be in a position to snag an ideal sale price, but you may be able to avoid losing more than you have to.

Knowing when to sell is a complicated balance. Professional M&A advisors can help you navigate the market based on your individual situation. They know the markets, buyer trends, similar transactions, and all the economic intricacies playing a role at any given time. They will know how to help you get the timing right while also avoiding common mistakes that can cost you money. And they can help you avoid procrastinating or being indecisive in a world where time is notorious for killing deals. For these reasons, it’s never too soon to talk to an M&A expert and get your house in order to be ready to sell at the right time.

At Benchmark International, our passion is helping business owners get the most value in a sale and achieve their lifelong goals. All it takes is a little conversation to get the ball rolling and get on the path to turning your dreams into reality.

Schedule a Call

Share This Post