There is no magical ‘right time’ to sell. In fact, a business should be ready for sale every day it is trading.
It’s the wrong time to sell when:
4. What do buyers look for?
The number one reason a buyer looks to purchase a business is that it allows them to progress in life and put their future in their own hands.
Buyers can be split into three general categories:
Buy a job (most transactions under $250k): These buyers focus on earning capacity and lifestyle are looking for security, longevity and, potentially, the ability to scale up later on.
Private buyers / Investors (most transactions $500k-$15mil): All private investors want a business that will give them a greater return than their other potential investments.
Corporate / Company Buy Outs (Transactions $1mil - $20mil and upwards): Companies generally buy established companies with full (or close to full) management structures in place. They focus on strategic purchases that offer access to new markets, new customers and products or services (typical of competitor buyouts)
What sort of buyer would be attracted to your business?
If you are thinking of selling, now or in the future, take our saleability test to see where you and your business stand. Every business owner should have a clear exit strategy - start to plan yours now. Evaluate your Business Saleability Score
If you need guidance to grow your business or if you are planning to Buy or Sell your business