Could 2021 Be a Good Time to Sell My Business?
The past 12 months have presented businesses with challenges they’ve never seen before. While circumstances are improving, things like PPP loans, Covid-19 protocols, and employee engagement are still weighing on business owners. If you know exactly what I’m talking about, you might not believe me when I say that today is actually an excellent time to sell your business.
We are experiencing a “Seller’s Market,” meaning there is available capital and more willing buyers than there are quality sellers. So, if your business is in tip-top shape and you are ready to sell and move on to your next adventure, there has never been a better time to hit the market.
That said, there is much more that contributes to selling for top dollar than just timing the market right. While we may be experiencing a “Seller’s Market,” that alone doesn’t guarantee a successful sale for every business. Here are two areas to analyze if you’re looking to sell in 2021:
- Business Health: What are your financial trends? Your business will always sell for more if the numbers are trending up than if they show a downturn. If you want top dollar for your business, avoid the mistake many owners make by holding on to their business too long rather than opting to “Sell High.” How about your employees and infrastructure? Are they happy and on-board? Is everything humming along? Your business will sell for more if there are no major issues with employees, and if the staff is committed. The same can be said for client and customer relationships. Bottom line – healthy businesses sell for top dollar.
- Personal Commitment: How do you feel about your business? Do you have the energy and commitment to keep it going strong through a sale? Have you already checked out? Business owners often underestimate the time needed to sell their business, and in the end, “run out of gas.” Your energy level and your remaining personal timeline factor greatly into when you should sell your business.
The health of your business and your willingness to give the effort to keeping it sharp have a much greater effect on value than the outside forces of the overall market. If your financial trends are strong, but you feel your energy waning, now might be the perfect time to sell and get the highest price, regardless of the doom and gloom the newspaper might be selling. If the financial performance is down, but you have the commitment to grow the numbers, you will likely get a higher price in the future. Look at your business’s health and your own personal commitment before deciding when it is time to sell your business.
- We are in a “Sellers Market.” If you’ve been thinking about selling, now might be a good time.
- Business health and personal commitment may be more important than current market conditions. If your business is health and you’re ready to keep it that way while you sell, it might be the perfect time.
- If your business is not healthy, but you’re still able to work hard and grow the numbers, it might be best to wait to sell your business, even if it is a “Sellers Market”.