When is the right time to sell my business?
This is one of the most frequent questions asked when clients first come to speak to us. Business owners are understandably worried about whether now is a good time, with the economic situations affecting the world. Here at Kingsbrook we see this as very personal question rather than a bigger, economic one.
There are two main questions to ask yourself in this situation:
1. When is it the right time for you?
2. When is it right for your company?
When is the time right for you?
A number of our clients come to us because they are reaching retirement age. They are tired of working all hours and want to redress their work/life balance. Others started their company with an end goal in sight, and that date is approaching. Others have reached a stage where they are too risk-averse to take the risks needed to help the company grow to its full potential.
If you fall into any of these categories, it wouldn’t surprise us if you are considering a sale. If you are reaching your chosen retirement age, you may be wanting to get things moving. Potential acquirers may try to chip on price if you need to leave quickly.
When is the right time for your company?
The best time to sell is usually when you don’t need to. You could be experiencing good sales growth, a strong market position, or have good contracts in place with customers.
You may have grown your company as far as you can. Would it now benefit from being part of a larger company or more experienced leadership?
Many of the business owners that come to us are entrepreneurs. People that identified a gap in the market that they felt they could fill. Some don’t have the experience of running large businesses and recognise that handing it over to someone more experienced will allow it to grow.
Aligning your right time with your company’s right time
The best outcomes take place when your reasons are aligned with your company’s reasons. Selling from strength means planning for a future without you there: making sure it can run without your everyday input, having trusted staff on hand to drive the business forward under new ownership. Having these in place is likely to provide you with a higher price.
Is now a suitable time in the M&A market?
Of course, this question needs addressing as well. Our honest answer here is that we can’t say for certain until you are at market and receiving responses from potential buyers. What we can say is that for us the market is busy. Deals are being done, and business owners like you are getting the exit they want. At Kingsbrook, we have always seen it as being more about finding the right buyer by researching your sector and putting the opportunity in front of as many relevant prospects as possible. This is what drives our success.
Could now be the right time?
If you are thinking of selling your company, we are happy to offer a free, no obligation meeting with one of our Associate Directors to discuss your options. We will talk about saleability, the likelihood of success, and how the market may perceive the value of your business as it stands today. We can provide you with a clear understanding of the sales process and whether it is right for you, either now or in the future.
If you are thinking of selling your business and would like to explore your options with Kingsbrook, please get in touch, either by email at [email protected] or call us at 01635 736741.