You may decide to sell your business because of various reasons, some of which might be beyond your control such as health, divorce, boredom, and others. No matter what motivates you to sell business UK, your sale’s timing has an influence on the price. Typically, sale price reflects your business previous performance and profits. Thus, you must consider these when deciding when to put your business up for sale. Below are some instances when you may decide it is time to sell your business:
Consistent Decline in Performance and Profits
After seeing a decline in performance, your original motivation may start to disappear and you do not have the energy left to build up again. Unfortunately, this can happen to burnout business owners. The problem is that when performance and profit drop, the sale price is lower. In case your business has reached this stage, determine if you can continue to run your business and increase profits to guarantee a better sale price in the future.
Slight Profit Variation Despite Sustained Performance Levels
In this situation, the sale prices for your business can be based on the previous 3-5 years of average profits. This will allow possible buyers to see the consistent performance of the business over a sustained period of time. Although the selling process is likely to take a while, you should maintain your sale price advantage.
Increased Performance and Profits
As your business grows, the chance of it getting sold quickly and at a better price tends to increase. But, many business owners will not want to sell their business when it is booming as they wish to enjoy the fruit of their labour. But, keep in mind that buyers are likely to pay for rising profits. Thus, it is always a perfect time to sell your business when it is experiencing growth.
Reduced or Diminished Interest in Running your Business
While your business grows, you will have to deal with business challenges which used to motivate you before. However, if these challenges are replaced with more human-resource or administrative challenges and you find them taxing, it might be the best time to exit the business scene.
No matter why you are selling your business, it is not too soon to draft an exit strategy and begin preparing your business for sale. If you have a plan in place, you will be able to take advantage of any situation and opportunity you are likely to come across with.