Business owners often dawdle when it comes time to sell their business. It can be difficult to justify letting go of the manifestation of all the time, money, and hard work that you’ve put into your company throughout the years. It’s easy to get caught up in finding the perfect time to sell in order to maximize your profit, but what if you discovered that now could be the perfect time?

The truth of the matter is, there is no universally perfect time to sell your business. However, it is a universal truth that waiting for the perfect economic moment, whether on a national or global scale, will leave you waiting forever. From elections to geopolitical tensions, it’s impossible to know what the future holds with certainty. Market disrupting events occur every year. What business owners can do is ensure their business is ready for sale.

How to Determine Your Business is Ready for Sale

Positive Financial Performance

While this isn’t the most definitive factor, a thriving business will always sell better than a failing one. It’s typical to provide three years of financial records for potential buyers, yet another reason the 1000 day exit plan is so important. Consistently high-performing companies display stability, potential earnings, and the ability to grow. If your business performed well over this time period, buyers are more likely to show interest. 

Personal Goals

Your personal goals as a business owner are critical to your exit success. Your aspirations and desires may change over time. If you’re dreaming of retirement, it’s time to talk about selling your business. If a new career opportunity brings you excitement, it may be time to sell your business to invest in a new one! Take some time to think and reflect on what you see for yourself, not just in the distant future, but within the next few years.

Consideration

Above all, the fact that you’re considering the sale of your business is the biggest sign that now is the perfect time to sell. As a business owner, you know that dedication and determination are two of the most important driving factors on a day-to-day basis. If your performance falters due to a lack of passion, your business’s value could suffer as a result. Think deeply about why you’re considering selling. 

If you’re noticing signs that you’re ready to sell, start preparing today. Don’t wait under the assumption that you’ll be able to sell with short notice at any time. Reach out to Stony Hill Advisors to speak with an experienced M&A advisor today.