If you have a business to sell you may wonder if there actually is ever a good time to sell it. With the world in turmoil at present and share markets more than a little unpredictable, you may be forgiven for thinking this may be not be a good time to sell a business. However, you may be pleasantly surprised to find that right now might actually be a much better time to put the business on the market than you think.
Clearly, the recent European Referendum has made market conditions very uncertain and causing many to delay investment. Business aside, it is human nature to look for certainty or a more predictable future before making any substantial decisions. Now that the referendum is out of the way we are entering into a protracted period of uncertainty as the final terms of the Brexit are negotiated.
This could well be the right to time to sell a business for 2 reasons:
- Things will go badly so this may a good time to withdraw and take any value you can from the business
- Things will go very well and so the business can be sold at higher value on the prospect of the upswing coming ahead
In fact, soon supply may well start outstripping demand and deciding to sell at a later stage of the game will mean that your business will become just one of many businesses for sale. There may be no better time than now to start on your business sale and steal a march on the competition.
The Quick and The Dead
It is not always the case that business buyers are looking for specific businesses in specific niche areas. Often investors are just looking for good earning opportunities. If there is likely to be an increasing number of opportunities being presented to the investor marketplace it will be better to get in quick to get ahead of the race and get sold.
You should be clear that a business is never guaranteed to sell. However, unless it is on the market, it can never be sold.
You should also bear in mind that business sales rarely happen quickly. When lawyers accountants and banks are involved you can be sure there will be delays and it has to be said that most business owners find they are not nearly as prepared as they think they are once the detailed negotiation gets underway. Much like a large family Christmas dinner, the more people that come to the table the longer it takes to prepare.
It takes time to get ready for the first potential purchaser visit. Rather like selling that old Ferrari or DB6, which needs tidying up, all the service history invoices being filed in order, maybe even a touch of paint – work will be required to make the business saleable. How much work will differ from business to business, but it can range from a full administrative overhaul down to a new carpet in reception and a front signage wash.
Even though the Referendum vote has been made for a Brexit it is unlikely the up and coming ‘change’ will be excessively dramatic, so you may be well advised to get in before the rest and start the ball moving to move your business to market.
If you think potential buyers may be reluctant to spend, we can tell you that, over the last few years, there have been many, many more purchasers than businesses to buy. In fact, some potential investors, or purchasers will wait for years for the right opportunity to appear on the market.
Your business might just be the right opportunity at the right time and now might well be the right time to get in early before the floodgates open and many more businesses come on to the market.
If you would like more advice about whether this is the right to time to sell your business – please get in touch for a free initial advisory consultation.