For many people who are business owners, particularly those who have started a business from the ground up or those in a family business, making the decision to sell is not an easy choice. Thinking about the pros and cons if I sell my business can be stressful, even if the decision has yet to be made.
Making the decision of the right time to sell a business is challenging in itself. The business market is very different from the residential real estate market, with specific types of industries often very independent of local markets. This is even more relevant with today’s global economy where local markets may have limited impact on the appeal of a specific business to international buyers.
When asking yourself if it is the time to sell my business, consider the following issues to help you to make the right choice for your personal circumstances.
What is the business worth?
If you are on the fence about selling a business, the first step should be a valuation. This allows you to have an independent business broker create a personalized assessment of the value of the business, which translates into a starting point for a sales price.
Will I have to work after the sale?
Not all business owners, even with the sale of the business, are going to be in a financial position to retire. If you are not going to retire, do you currently have a job or a new business venture lined up for after the sale? Most business sales will take several months to complete, and there can be added time delays over a simple real estate sale.
Do I want to have some role in the business?
If you are trying to decide if the time is right to sell my business, remember there are options to possibility stay on in a senior management role. In fact, some buyers may want to retain the current owner to ensure a smooth transition or to continue to grow the business.
Take the time to think about your needs, and that of your family, before making a choice. Then, if you are considering the option, schedule a business valuation as the first step.
