The start of the year is a time for new beginnings and trying new things. In a business owner’s world that might look like implementing new systems and processes or launching a new product or service. But what if that the change you have in mind is a much bigger than anything you’ve tried before? What if your ambition is for a complete lifestyle change and a fresh start? What if now is the right time to sell your business?
What if this is the year you intend to sell your business?
You’re probably already imagining what life might be like on the other side. You might want to try your hand at something completely different, return to employment or engage in voluntary work. Think of all that spare time you’ll have to spend with loved ones, on holidays and enjoying your hobbies. If you’ve had sound financial advice you’ll be supported by a healthy pension pot and, potentially, a nice lump sum in the bank on completion of your sale.
Is there ever a right time to sell your business?
Most business owners decide to sell for either financial or emotional reasons. Often it’s a combination of both. Can you relate to any of these push and pull factors?
Common financial reasons to sell up are:
- Your business is struggling and would benefit from a cash injection and a new owner’s perspective to get back on track.
- You want to release capital or equity tied up in the business.
- You’ve had a bumper year of profits and want to leave whilst you’re on a high.
You’ve built the business up to a sound financial footing and feel you can take it no further. You are financially comfortable and no longer need the business to provide for you and your family.
Popular personal reasons for exiting the business include:
- Your enthusiasm for the business is waning and deep down you feel it’s time to move on. Someone else would be better placed to take it forward.
- You believe you don’t have the required skillset to grow the business further.
- You’re approaching retirement and want to slow down or pursue other interests.
- Health issues prevent you from giving your all to the role.
- You are ready for a new challenge.
However you’re feeling right now, it’s ok not to be 100% certain about selling your business. That’s why we’re on hand to help.
How do you know if now is the right time to sell your business?
The honest answer is you won’t know until you begin the process. If you’re experiencing any of the thoughts and emotions above and have a gut feeling the time is right then it’s worth investigating.
An easy way to find out if you’re ready to sell is a PREScore™ assessment. It’s an online questionnaire that takes a few minutes to complete. The resulting report will generate a personal readiness to exit score based around four key drivers. If you’re interested to learn more, complete your free PREScore™ now.
For a more detailed financial evaluation, a Freedom Score assessment offers clarity on whether now is the right time financially to exit your business. We examine your situation across a number of different financial criteria to determine whether you’ve reached the point at which you can comfortably step away from your business. Once you’ve reached your personal financial Freedom Point, we can then work together to explore the business sale options available to you.
Is there potential to build value in my business before I sell?
Of course, not every business owner will have reached their financial Freedom Point. We work with business owners, months or even years before they sell, to build value in their business.
Every business is unique. We regularly help companies in the engineering, manufacturing and professional services sectors to increase business value before they are eventually sold but even if you are outside of these sectors, we are happy to discuss your options with you.
So, is this the year you’re going to sell your business?
Think back to when you started your business. There was a seed of an idea, a thought or an intention that grew and grew until you couldn’t hold it back any longer. And you founded your start- up.
However strong your intention to sell, sometimes you have to take that seed of an idea, be brave and start the conversation.
NOW just might be the right time to begin the process of selling your business. Why not explore the opportunities open to you and book a discovery call with one of our business brokers. An honest, realistic conversation could be your next step to securing your financial future.
