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Ken Sommer - B2B CFO - When should I sell my business?
Hello, I'm Ken Sommer,
at B2B CFO, clients often ask us, "When is the right time to sell the company?"
This is a very delicate question because selling a business is a major life
decision.
According to the well-respected Woodbridge Group,
owners need to come to the decision to sell
after a long period of reflection
so that they are mentally and emotionally prepared to transfer their
companies to new owners and move on to other pursuits.
According to Woodbridge,
business owners should first consider their psychological readiness to let go
of their business and create a post transaction vision for their life.
A second consideration in knowing when to sell is to determine whether the
business is on an upswing and has legs.
This is different from trying to time the sale perfectly out of greed and wanting to
sell at the peak.
The best time to sell a company is when it is operating efficiently and
profitably
so this performance is sustainable into the future and
any prospective buyer can easily see this.
By following this advice the business owner will know that they're ready to
close out this chapter in their lives and move on.
Hopefully to new and interesting challenges.
This is the initial counsel I give many clients
who cast the question,
"When is the right time to sell my company?"
Then we get to work creating value in their company for the future sale that
inevitably will come.
I hope this helps, thanks and have a great day