“What do I do now?” It’s the number one question on every business owner’s mind. Challenging times reinforce that good planning is the critical priority. As you re-assess both near and long-term business plans, now is the time to look into what it will take to sell your business when you’re ready.
Here are 4 key questions to ask:
- Can I wait 7 to 10 years?
That is the typical timeframe for an economic recovery cycle. Now is an ideal time to take a deep look at your personal life stage and goals, as well as the state of your business, to determine your exit timeline. Consider whether you have the stamina and resources to wait it out another 7 to 10 years or if now is the time to begin the selling process.
- How do I determine the best timing?
It typically takes 9 to 18 months to sell a business. Keep this timeframe in mind when you’re putting together your exit strategy and nailing down a desired sell date. In addition, build in time for action steps in operations, finance, sales and marketing, and investments that can further strengthen your business value.If you’re ready to sell now, don’t forget that creative deal structures can help you continue pursuing a sale, while also taking advantage of the coming economic recovery.
- How much is my business worth?
Your company’s market value is based on your revenue numbers and cost infrastructure, as well as that of comparable companies in your industry, both regionally and nationwide. It’s also important to look closely at past financial performance and current business health to identify opportunities to increase your company’s value.
- Are there qualified buyers out there?
Always! There are buyers that match businesses in all economic climates. In fact, if you have a resilient business or one with a great foundation that a buyer can build upon to take advantage of the rebound, your business could be ripe for sale.
As part of your business plan re-assessment, you should know when you want to sell and the steps and timing it will take to sell your business. Proforma Partners has been in the business of selling businesses in all economic climates for the past three decades. We’d be honored to be your personal guide through this process. We offer you a free consultation to answer your questions, tell you what your business is worth, and help you put in place your best strategy.