How to sell a business by ignoring market timing

"While snowboarding over the weekend, I found myself dangling in midair from a “paused” lift.  Looking to pass the time, I decided to chat with my seat neighbor.  To my good fortune, I was sitting next to a very interesting business owner.  He was a successful CEO in his fifties who ran a manufacturing company that  generated 10 million dollars in revenue and over 1  million dollars in EBITDA.

He told me he was tired and getting very close to burnout.  But, his plan was to wait another four to six years before attempting to sell his business.  His thought was that he wanted to sell at the peak of the next cycle.

On the face of it, his approach seems to make a lot of sense.  Most mergers and acquisition pros will tell you that an economic cycle can affect business valuations by up to “two turns” meaning that a business selling for five times EBITDA at the top of an economic cycle may go for as low as three times EBITDA at the lowest point.

So here is the problem. "

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.