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How to time the sale of a startup

On Behalf of | Feb 8, 2018 | Buying & Selling Businesses |

It is not uncommon for a North Carolina business owner to want to exit the company. In some cases, this means selling to another company. However, it is important to time the sale to get as money as possible from the buyer. One way to know that it is time to sell is that the company has grown significantly in a short period of time.

Instead of managing the growth of the company, it may be best to sell at the peak of its momentum. This will allow someone else to scale the company if the founder isn’t interested in doing so. In some cases, an entrepreneur is more interested in starting multiple companies as opposed to staying in one place for many years. Those who are interested in moving on to other opportunities may benefit from accepting a purchase offer and exiting on a high note.

While some may believe that they can manage two businesses at once, this is generally not a good idea. In most cases, each business is worse off. Business owners who try to run two companies may be at risk for burning out, which may not allow them to give their best effort.

Those who are thinking about selling their companies may wish to work with professionals who may be able to find serious buyers. If an offer is received, it may be best to have an attorney review it. This may help to ensure that the business transaction is structured in a manner that the owner is content with.