When Is The Right Time To Sell A Business? | Stock Market News
Those looking to sell a business often ask ask business brokers such as ours a simple question: “I don’t know if I want to sell my business; so when is the best time to sell?” The answer to that question can have a dramatic effect on what the value of the business for sale is. At Corporate Investment Business Brokers, we’ll provide you with a comprehensive business valuation to help determine the worth of your company and whether selling is the best option for you moving forward. As with all commodities, the value of a business fluctuates with events or circumstances that are often beyond the control of the owner. Recently, a local business owner had his business on the market for $750,000. There was great buyer interest but the seller decided not to sell but rather to wait a year or two until he felt hat he could get even more money for it. Tragically, he became seriously ill and could no longer operate the business himself. He decided to turn the day-to-day operation of the business over to his long-time manager and friend to operate. But after a great start, his performance steadily declined and the business soon developed financial difficulties. Six months later it was sold for $195,000. There are several things to think about when determining the right or wrong time to sell a business. The following is a list of positive factors that may suggest the time is right to sell. How many of them apply to your business at this time?
• The financial picture of the business has improved over the last several years, showing increased gross sales and owner benefits each year. Potential buyers love to see a business that is increasing in sales and profits.
• Interest rates are relatively low. The monthly and yearly debt service on the business will be lower, thus making the bottom line of the business more attractive.
• The stock market and other vehicles to earn money on your cash are down. A volatile or declining stock market will cause investors to get nervous about placing all of their money in it. They will look for a better place to put their money for a higher rate of return and a business is a logical place to do so.
• A desirable location is always a plus. The tremendous growth that we have experienced in Southwest Florida over the past few years, along with a great climate and beautiful surroundings, attracts affluent new residents with a great deal of discretionary income.
All of these factors are a big plus for the business seller looking to gain top dollar for his/her business.
Stock Market News
Tags: Business, Right, Sell, Time
This entry was posted on Friday, July 16th, 2010 at 15:17 and is filed under News.
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