Welcome to my “Should I…” series! In this series, I will answer questions that I hear frequently from my clients. I would love to answer your questions too. So leave any questions you may have in the comments below and I will answer them in a future “Should I…” post.
Should I sell my business while the economy is up? I had planned to sell in about two years, but I am wondering if I should do it now while the economy is good, since we don’t know what the future will bring.
One thing I can say unequivocally is that it takes longer to sell a company than most business owners envision it will. There are so many factors that go into a successful sale or transition of ownership. In fact, research from the Exit Planning Institute has found that 70% of businesses that are put on the market do not end up selling. So what can you do if you plan to sell in two years or 10 years? Start planning now!
Ask yourself important questions like:
· When do I want to exit?
· How much after-tax income in today’s dollars do I need?
· What would an ideal transition look like to me?
· Do I have a transition plan in place?
· Could my business operate effectively if I wasn’t here?
The truth is, this simple question requires such a complex analysis and answer that you should speak with an advisor who can help you through this process. To get you started, I have written a book called One Shot that can be a great resource for you. You can click here to read it. hen you’re ready, let’s discuss an action plan to maximize the wealth you generate from the sale of your business.