The biggest financial transaction in a private business owner's life is likely the sale of his or her business. Although many transfers are predetermined, others result from unplanned events, which is why it is essential for business owners to have an exit strategy.
Operate your business as if you are going to sell it. Most owners assume they will operate the business until retirement. But their priorities or interests could eventually change-or be forced to change due to unforeseen circumstances such as illness or disability.
Timing is everything. The best time to sell your business is when you're on top. The company is doing well and the industry is flourishing, and next year looks even better. Cyclical factors are important, for example in retail most revenue is earned in 4th quarter. Sell in 1st quarter of next year to show good revenue and the inventory is at lowest point.
Market conditions will also have a significant impact on your ability to sell a business and the value that you will ultimately receive. The supply and demand of businesses vary over time and across industries. Current and anticipated market trends and tax policies may suggest the optimal times to sell as well as availability of bank financing. An Experienced Business Intermediary will be able to advise you on the current market conditions.