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How to time the sale of a business

On Behalf of | Jan 7, 2020 | Buying & Selling Businesses |

Ideally, business owners in North Carolina and throughout the country will get maximum value for their companies. However, to get top dollar for their organizations, owners will need to time the sale properly. Depending on how long a person has owned a company, it may be possible to look at its prior performance to find useful patterns or cycles. Determining such a pattern may make it easier to put the company on the market when it should be most desirable to buyers.

If a company is going to be put on the market, the goal should be to sell it before the end of the calendar or fiscal year. This may reduce the chances that a revenue or an earnings miss scuttles a proposed sale. It is important to note that the sale can take anywhere from three to six months to finalize.

Individuals who want to sell their companies should look for signs that the industry is growing or declining as a whole. Generally, buyers aren’t going to pay as much for a company that might be producing goods or services that people won’t want in future years. This may be true regardless of how well an individual company is performing. Business owners may also want to complete the sale of their companies before competitors take some or all of their market share.

The sale of a business or business assets may be a lengthy process that may require the assistance of an attorney to complete. A lawyer may assist with the due diligence process or negotiate the terms of the sale in an effort to help a seller obtain a favorable deal. Legal professionals may be able to help obtain local, state or federal regulatory approval for the sale to close.