Experts are of the opinion that now is a valuable time to consider selling your business, as the economic trends have made it a favorable environment. As Tim Scot, Partner of Knights Professional services explains that the general belief is that “given the current economic and political uncertainty, now is not necessarily a good time to sell a business, but in fact it’s a great time to exit.” If you hesitate to capitalize on this environment and consider selling, you might regret it later. Patricia E. Farrell, Attorney at law, is of the opinion that trying to wait out the pandemic might be costly, making right now the best time to consider selling your business.
PROTECT YOUR HARD WORK
Your business is the result of an idea borne out of arduous work, careful planning, and many sleepless nights. If you own a business, you already know what we mean when we say a business is your baby. You have put in year and years of commitment, long hours, and thought to make it the success it is today. Owning a business demands all your time and energy and takes everything out of you. Much like a child, you tend to it as a parent would which means you are the one who has been solely responsible for its failures and your successes.
It is only natural to consider selling your business. It can be due to several reasons; to retire, to invest in a new project, or you are just not as excited about your business as you used to be. It is not easy. You have poured copious amount of blood, sweat, and tears into your venture. Selling your company is not something you should take lightly. Before you take this step, you need to seriously contemplate this decision, decide why you want to sell, and how it will impact your life.
TIMING IS EVERYTHING
Knowing when to sell is a key moment in every business owner’s life, which is why you need to think long and hard about your next move and bring your spouse and family members into your discussion about why you are thinking about selling your business.
Timing is the most essential variable when it comes to any successful business. As Bill Gross of ideaLabs said in his Ted Talk, it is essential that you time the market. Everyone’s business journey is different, which is why you need a personalized approach to time through the perspective of market trends. This includes knowing when to sell. Selling a business at the right time can make all the difference to you and your family.
ALLOCATION OF YOUR RESOURCES
If you find yourself needing to invest increasingly of your wealth back into the business to remain competitive You might not be looking forward to reinvesting already generated dividends back into the business. Hence, considering selling your business is a worthwhile pursuit.
Selling your business awards, you with the financial independence that can open a whole new world of possibilities. What you choose to do with this independence is completely up to you. At the end of the day, the most important lesson you can take from this is, if you lose interest in your business, if you find yourself bored or if you find yourself wishing to retire. Your business performance will start to show this in no time.
GET OUTSIDE ADVICE
Selling is a daunting task. Before you sell, remember to be clear on your short- and long-term goals for you, your family, the business, employees, customers, suppliers, and your local community Take a serios amount of time to sit down write down and decide on the criteria for an exit that is best for you and your family. Consult your professional third-party advisors such as your Wealth Manager, Accountant, Lawyer, and Merger and Acquisition Advisers to understand what a gradual and or full exit from your business will entail and look like for you and your family.
PASSIONS TO REVIVE
Sometimes a dire lack of passion for the work you once used to look forward to causes feelings of frustration with the day-to-day tasks of leading your business. These feelings of disconnect between you and your businesses ever-changing needs are a sign to consider all your options. This is a very commonly cited, and a very valid reason. Burnout is a state in which you no longer enjoy the business. You might feel fatigued, or simply bored. The decrease in enjoyment of everyday business activity is often tied into a business leaders' overall motivation and morale. It is caused by constant exposure to high stress and an expectation to live up to ever higher standards and often results in mediocre performance. Before your feeling reached a critical stage, it is n your best interest to consider what a sale might look like and what new passions to pursue.
A VISION OF RETIREMENT
Retirement is one of the most common reasons for selling a business. You might feel like the time has come to sit back and relax. You might feel like you have spent enough time leading your business. You want pursue a less strenuous lifestyle and need to find a way to fund your retirement and philanthropic interests. A successful sale can result in the funding for whatever goals and vision of your retirement that you might have.
Karl Sigerist is a Managing Director at The Shaughnessy Group — The Shaughnessy Group is a lower middle-market corporate finance advisory firm. With our collective experience, access to industry data and resources we can confidentially examine a company to supply a realistic value range. Request your free report.