The 5 Numbers That Can Predict the Perfect Time to Sell Your Company | Inc.com

Do you feel a little richer this month?

You should. The value of your business just went up.

Since 2012, my team at Sellability Score has been analyzing offers entrepreneurs have received to buy their businesses. Every quarter, we look at the average multiple offered, and it is now at its highest point since we started tracking offer multiples.

For the most recent quarter, ending June 30, 2014, the average offer received was four times pretax profit (offers were much higher in some industries and among businesses with certain attributes), or about 10 percent higher than the average multiple offered lifetime of 3.66 times pretax profit.

When the value of your largest asset jumps by 10 percent, it may be tempting to hurry and get your business on the market. After all, isn't it better to buy low and sell high?

The Downside of Selling at the Peak 

The thing many of us forget is that when you sell your company--possibly your largest asset and the biggest wealth-creating event of a lifetime--you have to do something with the money you make.

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The 5 Numbers That Can Predict the Perfect Time to Sell Your Company | Inc.com:

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.