When is the best time to sell my company?

The absolute best time is when things are going well and the future looks bright. However, businesses sell everyday at all different points of their lifecycle. The key is pricing the business correctly and then implementing an appropriate marketing plan for the sale.


How long does it take to sell a business?

It generally takes from six to nine months to sell most businesses. Some of the factors that affect the ultimate success and the time it takes to sell a business are:

- The cash flows generated and the current condition of the business
- The future growth prospects of the business
- The reasonableness of the asking price
- The down payment required and financing offered


Can I sell my business myself?

You can. However, we would only recommend that you go this route if you have a buyer that has approached you and has agreed to your price and terms. Otherwise, it may significantly benefit you to use an experienced broker. Most owners find that the frustration, expense and time involved in marketing their business themselves does not yield the financial gain they expected. In fact, because owners typically do not know how to effectively market the company to a broad range of buyers, they end up not selling the business at all or for less than they could have received. In addition, owners find it quite difficult to maintain the confidentiality of the process when they are selling it themselves. And once word gets out, employees and customers get nervous about the future. A professional business broker is skilled at marketing businesses and finding a buyer and in managing the overall process. Just like an athlete or entertainer uses an agent to market and negotiate for them to improve the financial results, business owners use professional brokers to sell their businesses more quickly and at a higher price.


How do I determine the value of my company?

The marketplace ultimately determines the true value of a company. A business is only worth what someone is willing to pay for it. However, in most cases, the value of a business relates directly to the level of past cash flows and the company's ability to generate future cash flows. In addition, comparing the sale price of other similar businesses that have sold proves a fair measure as to the value the marketplace will assign the business.