Business Sense: The Pitfalls of Waiting to Sell Your Business
Timing a business sale is never an easy task, especially in today's volatile market. Much like the value on your home, there is often no good way of telling what the future will hold. The economy has only complicated matters as business profits, cash flow and overall values have been in a state of fluctuation for some time now.
With the recession taking a firm hold on the business-for-sale marketplace over the past few years, many owners may be asking themselves when the right time to begin the sale process will come. Will the economy rebound soon? Will that boost valuations? How will it affect the number of buyers and sellers on the market?
These are all certainly things business owners should consider and we have seen a slight improvement in the market as of late. But while some might be tempted to continue waiting a few more years for better prices, there are several issues that could cause this strategy to backfire. Here are just a couple of the possible pitfalls of waiting too long to sell your business:
A Slow Recovery
While we've seen a few positive signs, a full economic recovery is still a long way away. Too many owners are waiting for their businesses to spring back to the profit levels they were seeing pre-2008. But a quick fix isn't going to happen anytime soon. Business owners who are emotionally and financially ready to sell need to start the sales process now and take the necessary steps to maximize their business value. Even if sales are slow right now, many experts have tossed around the phrase "flat is the new up."
If your numbers are staying consistent, consider that a good sign that your business will be in demand on the market.