Timing the market when it comes to selling a business is almost impossible, however…
It might be a good time to consider selling if you’ve had 3-5 growth years.
Why? Because one off year can reset the clock.
Company 1:
This business had three great years, and they decided to sell. They received maximum value from the company.
The next year, the pandemic hit and took the company down. The previous owners were not affected because they sold at the right time.
If they hadn’t sold when they did, they would be looking at a minimum of five years of rebuilding to sell high.
Company 2:
This business had six years of great financial success.
The owner felt the trend would continue for two more years. After scooping those profits, he said he would be ready to sell and sail away into the sunset.
The trend did not continue.
Because of his industry, his next best chance of selling for maximum value will be in seven years if the company happens to hit its targets.
Every missed target is a setback for value.
Three strong years of financial growth is good, and five years is ideal.
Are you on an upward growth cycle and want to discuss what companies like yours are selling for?
assess@criadv.com