The right time to sell a business is often one of the most difficult decisions a business owner must make.
I believe the decision to sell should be based on two key points:
Current performance of a business
Current passion & energy levels of the owner
I will address performance of business first.
Performance of business
When a potential purchaser is assessing your business and is deciding which to buy and what to offer, they will focus on your most recent financials and
zero in on the current profit. Importantly, if you are considering selling and want to maximize your return, aim to sell when your profit & loss
statements are either consistent or trending upwards where possible. Falling sales and decreasing profits will make buyers cautious and either turn
them away or prompt them to make low offers.
Passion & energy levels of the owner
I am sure we have all experienced bad service, when staff or owners do not greet customers with a smile, or, you feel that you are disturbing them if you
have a question. If you or your staff are behaving in this manner and a holiday doesn't help, then it is definitely time to consider your exit strategy.
Once your business begins to suffer because you're no longer passionate about it or servicing your clients, it won’t take long and your net profit
will start to suffer. In turn, this will significantly reduce what you can sell your business for.
If you're considering selling and would like to find out what the next steps are - get in touch and we'll assist you with your inquiries.
Tony Iasiello has been working as a Business Broker since 1997 having undertaken substantial accounting training and having also completed his business sales course. Tony’s area of specialisation in recent years has been in supermarkets, cafes and transport/distribution rounds. Also with the current influx of business migrants coming to South Australia, Tony has been involved in many happy sales for both vendors and new owners.