Business brokers often receive the telephone call that begins with “I want to sell my business.” The response will suggest inquiries about why the owners wish to sell and to organize a business valuation. Due to their vast experience and knowledge of the current marketplace, business brokers will offer help and advice to ensure the deal can be concluded satisfactorily.
No Choice but To Sell
On occasions, the business may be failing so fast that it is better to sell when there is some value still left in the business, rather than waiting until bankruptcy arrives. For these business owners, the need to “sell my business,” has probably been paramount for a while and they may have left it too late.
Other business owners may need to sell because a family illness may prevent them from working the necessary hours and with the dedication that was previously possible. This may not matter considerably where the owner or investor is able to allow the business to continue without their input, but many businesses are based on the contribution and image of the business owner.
Planned the Time to Sell
Where a business was originally purchased as an investment, often with other investors, there may be a requirement that the business is sold after a specific number of years, perhaps 3 or 5. Where the investors completed the deal with a clause that specifies when the business must be sold so that some or all the investors can withdraw their capital and any gains, the choice and timing for the sale may not be able to be changed.
Some business owners will know that their business has or will soon peak, due to business trends and changes in technology or the marketplace. They will understand that they must organize a way to “sell my business,” at exactly the right time because, in the future, its valuation may reduce.
When you have planned efficiently, you will need between 6 and 12 months’ advance notice to be able to complete the sale within the full set of circumstances that suits your motivation and requirements. Is this part of your exit strategy?
