The Best Time to Sell Your Business.
Selling your business is one of the most important decisions you can make for you and your family. Timing the sale of your business is crucial. Several factors influence the final contract price for your business. Just like the housing market, favorable conditions can lead to either a buyers’ or sellers’ market. Interest rates, capital gain rates and the access to capital are the most important factors in determining the market conditions. Low rates and easy access to capital drive the price of businesses higher. And for those who are prepared to sell, who have created a saleable business, they will reap the benefits of these favorable markets.
When capital gains rates are low, the net proceeds from your sale will be higher. When interest rates are lower, Buyers will have more buying power and can afford to spend more for a business. Finally, access to capital, primarily through banks and the SBA, provide the funding needed to complete the transaction.
However, these conditions will not help an unsaleable business. Your business must be capable of passing the due diligence processes and appraisal process. If you are not prepared for this, you will not sell your business at the right time for maximum profit.
The good news is that we can help. Helping others make the changes necessary to realize the potential value of their business is what we do.
Contact us today! For a free Consultation.