Sometimes the owner of a business has no choice but to sell a thriving enterprise, such as in a divorce, the splitting of a partnership or the death of a major shareholder.
But timing is key when it comes to getting the best price for a company, and depending on how well a business is performing, a good time could be right now, according to investment banker Fred Rock, who helps clients buy and sell companies.
“The best time to sell your business is when your business is doing well, the prospects for your business to do well are easily explainable and there’s a perception that the economy in general is going to do well, said Rock, managing director of Focus Investment Banking, a Washington, D.C.-based firm.
“When you put all those things together, you can get the best sale price for your business in that kind of environment,” he said. “For example, if your business is doing well, but the economy isn’t doing well, you’re not going to really get as good a price because buyers look at the economy. They’ll wonder how long you will keep doing well if the economy stays bad.”
With an estimated 76 million baby boomers in the pipeline turning 65 at a rate of 10,000 per day for the next 15 years, according to Pew Research Center, many businesses owned by people in their 60s will be changing hands. The 2011 U.S. Census reported there were 7.4 million small businesses in the country providing jobs for 113 million workers.
The choices for business owners nearing retirement often boil down to passing the businesses to heirs or selling the company for retirement income.
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Timing is key when selling a business - Business - The Buffalo News:
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.
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