- October 1, 2016
- Posted by: admin
- Category: Business plans, Exit Planning
Knowing the right time to sell is essential to a successful divestiture of your company. A Nevada business sale requires making all the right moves, avoiding unnecessary pitfalls and doing the right things at the right times. It can be tricky for a small business owner to understand if the time is right. Here are some things to keep in mind that will help you recognize when the time is right to sell a Nevada business and how a professional broker can help.
Timing to Sell a Nevada Business
Many people don’t realize that the best time to sell your business is exactly when you don’t need to sell your business. This may seem counterproductive, but while your company is at the top of its game and the future looks good, when the business is performing well and profit margins are high, that’s when your business is at its highest value.
Buyers are attracted to bright future prospects. If your business shows a successful track record and appears to be on an upward trajectory, buyers will see potential for continued future growth. This means not only will they be willing to buy, but they will be willing to buy at a premium. A business that is doing well is likely to attract far more buyers than one past its prime, and buyers who will pay more lucrative prices.
Understanding Market Conditions
What are the current conditions of the overall market? Are interest rates and inflation low? Is spending up? What about the industry in which you practice? Is it in a cycle of growth? What about current acquisition activity? Have other businesses like yours sold recently at good prices? All of these are indicators that it may be a good time to sell.
What Is Your Competitive Advantage?
Companies that sell the fastest and for the highest dollars have a demonstrated competitive advantage in their market sector. This advantage is what contributes to their prospects for growth and success in the future. A solid management structure within the company is another indicator of good sales potential.
In short, if things in your business are running like a well-oiled machine and the economy is strong, the time might be right for you to sell. Obtaining the information you need to make the right determination can be tricky, however.
Getting Professional Help
Securing the services of a professional business valuation and consulting firm can be an important step in knowing when the time is right to sell a Nevada business. Consulting and valuation firms have the experience and knowledge to assess all of the above factors and more and help you know when the time is perfect for your business sale to take place.
If you’re considering selling your small business in Las Vegas, Henderson or Boulder City, contact Jamie Schwartz of Schwartz Strategy and Valuation. Read over the business sales services or call (702) 278-1346 for more information.