September 21, 2017 //
The most fundamental question to ask yourself in deciding whether you should sell your business is why? Why are you considering selling? There could be any number of reasons, but understanding your motivation will help you understand whether selling is the best answer.
Here are some common reasons why business owners start thinking about selling:
Now that you understand your motivation, think about whether there are any alternative solutions that would let you achieve the same outcome. If there were, would you still be interested in selling?
Selling your business requires a significant financial and emotional commitment. Know your motivation and make sure you’ve weighed all the options before you start down this road.
After evaluating your motivation behind selling your business, the next step is to assess what resources are currently available to you.
Are these resources sufficient to enable you to sell your company?
The following points catalogue some of the most important areas of resource to consider:
Selling your business requires a significant amount of resources – personally and financially. Make sure the resources you have are sufficient to get you through the transactional process of selling your company.
Consider hiring an M&A advisor to help you through the process – not only will it free up your time and energy, the right advisor can also get you more money through the sale of your business.
In the first two articles of the series, we looked at the personal questions of resources, energy and motivation to sell. Now let’s discuss the question of timing. You might ask why timing isn’t the only issue to consider when selling a business, due to the ever-shifting global economy and constant ebbs and flows in business outlook. The answer is that timing, although a critical indicator in selling a business, is only important when considered with factors such as peace of mind and personal commitment.
Have you arrived at a time and place where you can honestly say your resources and energy would be more appropriately directed towards something other than the business you are currently running? Or, to put it another way: are you feeling like B.B. King and finding that “The Thrill is Gone”?
If the answer is ‘Yes’, then it is the right time to sell.
Logically speaking, the best time to sell would be a time when your business is earning a good profit and the economic market situation is positive, but these things won’t matter if the time is not right for you.
Once you are mentally ready to sell, and can taste life after business ownership, then the journey to closing is much easier and certain. Ask yourself the question above before going any further in the decision-making process and you will gain better insight into the seemingly confusing matter of timing.