The decision to sell a business is a very important one. It’s a decision that takes a lot of thought and analysis, but it can also be quite emotional. We sell businesses for many owners who started the business personally, years ago, when they were in a much different place, at a much different time in their life. Through hard work, that business has grown to be successful. It’s often compared with a child because there is no doubt that business is your baby! Also, the decision many times affects more people than just the owner. There are often loyal employees to consider. People that have helped an owner build this successful business and often financial success. Fortunately, there is guidance available to help you determine whether it's the right time to move forward with a sale. Making the right decision will help you maximize the value of your business and ensure your “baby” ends up in good hands. A Transworld business broker can help you by looking not only at the financial aspect of the sale but also the personal one.
Beyond the numbers, the most important question you must ask yourself is: “I am capable and willing to grow this business”? Those are two very different things: capable and willing. Meaning, are you willing to invest the energy, effort, and money required to hire and train more people, make necessary capital expenditures, and develop more business? Also, what kind of risks are there in front of you, either seen or unseen at this time? I think 2020 was a reminder that no one truly ever knows what headwinds are ahead. If you ARE willing and successful in growing your business and increasing profitability, that’s never a bad thing. Then the only thing you must worry about is where the market is when you are ready to sell. (p.s. it’s excellent right now). However, if you are honest with yourself and the answer is that you have any doubt as to whether you want to, or you will be able to grow your business…. then your business is worth today as much as it will ever be worth. It might be time to think about selling your business at its highest value right now.
No matter what you decide, it is a good idea to have a professional business advisor by your side. At Transworld Business Advisors, we are experienced business brokers that can help guide you through the entire process of valuing and selling your business. We always stop short of saying we’ve “seen it all”, but we’ve seen a lot. We have certainly seen many business owners struggle with the timing of the sale. We can give some good advice on first if you have a business we can sell if then, is the right time for you to sell, who the most probable buyer of your business is, and what a buyer might pay for it.
The decision to sell a business is a big one and should not be taken lightly. For many of our clients, it is the single largest financial transaction they will ever be a part of. That’s not something you want to do all on your own. Transworld Business Advisors understands how difficult the decision to sell is and we have the expertise to guide you through the process.