Rising sale prices for businesses have presented sellers with an excellent opportunity to take the leap. In fact, 60 percent of owners are confident that they would receive a favorable sale price if they sold their business today. It can be tempting for owners to jump into a sale. However, it is important to have a clear and well-thought-out exit strategy to receive the best sale price and a smooth selling process. A panel of small business experts have identified, what they believe, are crucial points to consider when developing their exit plans:
- Take action now: While the 2020 market is promising, the sunny weather won’t last forever. The GDP is expected to slow its pace approaching 2020, which also falls on an election year — known historically to soften sales. For owners waiting on the right time to sell, it might be wise to accelerate the decision and make 2020 your selling year.
- Invest in your business: Deciding to sell doesn’t mean ownership duties take a backseat. It’s critical that owners don’t fall into the “last day of school” mindset and neglect their responsibilities. In fact, once deciding to sell, it’s more Important than ever for owners to invest in their business. Upgrading equipment, increasing marketing efforts, and removing excess or obsolete inventory will not only increase the value of the business, but prove to buyers that the business has not been neglected.
- Prepare your financials: With such a large number of healthy businesses on the market, buyers are doing their due diligence and evaluating the long-term profitability of each opportunity. While revenue declines may not be significant, it’s important to have a good explanation for these variances and how they relate to fluctuations in the economy.
It’s difficult to predict the future. With profitable businesses fueling the market and an election year on the horizon, 2020 could be a pivotal year. While these are only predictions, sellers should consider taking advantage of this high point rather than risk having to wait longer to sell. Gateway Mergers and Acquisitions is ready to help you sell your business today.