Should I Sell My Business? How To Answer A Tough Question.

When you own a business, you always have the option to sell it, but how do you know when the time is right to put it on the market? The good news is that it's never too soon to be thinking about your exit strategy or your retirement plans. But how do you determine when the time to sell is right? While every business owner's situation will likely be different, there are several factors that any business owner should consider to aid in making such a critical decision. 

Your Current Financial Position 

Retiring completely after exiting your company means you will need to have adequate financial standing to maintain whatever lifestyle you plan to pursue. You will need to keep your current cost of living, scale back, or make arrangements that enable you to live a little longer.   

It is important to consider the timing of your company's sale. You will want to take advantage of optimal timing to get the most value in a deal and exit on the best financial terms. A quality M&A advisor can help you determine the best timing for a sale based on economic factors and the current climate in your particular industry. 

If you plan to invest in or start another business rather than retire, you must consider your financial standing. You will need the proper means to move on to the next big thing. Selling your company can be a jumping-off point for you to embark on your next venture. No matter your plans, the bottom line is that the right timing and maximum value are imperative. 

The Performance of the Business 

There is a common misconception that you should not sell a business when it is doing well. But selling your company when it's thriving and has a bright future is a great idea. Buyer interest will be high, creating a competitive bidding environment, which ultimately means you can get more money for your business. While it is a tough decision for any business owner, you could miss out on an ideal opportunity if you wait. 

On the other hand, selling a struggling business can also prevent it from going under and prevent you from losing out entirely. If you sell and get out at the right time, you can minimize your risk of more losses and hopefully see the business you built to survive. Assessing your business's health and considering your industry's existing market conditions will help you decide if the time is right. 

Buyer Interest 

Even if you may be thinking about something other than selling, certain businesses may be in high demand, especially if they are doing well or if they can help another business add new products, services, or innovations. Buyers may approach you even if you are not thinking of selling. In this case, it can be worth considering making a deal. Thriving companies sell faster and for more money, so it is the right time. And even if you do not want to go through with a total sale, you should consider a merger and how it could benefit your company and its bottom line. Specific deals can be structured so that you keep a stake in your business but do not need to be as involved in the day-to-day operations. This arrangement can give you a jump on retirement without retiring when you are not entirely ready. Any time buyers show interest in your business, you are doing something right. It's just a matter of deciding what suits you and your family. 

Your Level of Dedication 

We don't need to tell you how much hard work and dedication go into running a company—you already know this. But are you still as dedicated today as you were when you started the business? It's not uncommon for a business owner to become burnt out. If your passion has dwindled, hanging on may not be in the business's best interest or your well-being. Consider whether you are still willing to invest in the company if you are still motivated to pursue its growth, and if your commitment suits the company's and your employee's future. Other people's lives are in your hands, so it's vital that you recognize that a change in ownership may be what the business needs to survive or grow. Leaving your emotions out of the decision can be challenging, but you must consider what's best for the business's future. It may hurt to let it go, but it will hurt even more to see it fail. 

How an M&A Expert Can Help 

These are all difficult decisions to face for any business owner. But you don't have to feel like you have to do it alone. Simply talking to an expert who works with business owners like you every day can help you figure out what's right for you and can help you find comfort in the process. You may need to realize how many options are available to you. Some strategies can help a company grow or even bail it out of a bad situation. Or maybe you need some guidance on the timing of a sale or what exit strategies might be on the table. Whatever your circumstances, the right M&A advisors can help you navigate the most challenging decisions to make the right choices for your beloved company.