A business, like a relationship, isn’t always meant to last a lifetime. Sometimes, the real goal is to develop something meaningful that lets you move on to something even better.
Staying tied to one organization for years out of a sense of loyalty won’t necessarily be the best decision for you. Recognizing the signs that it may be time to sell your business can help you transition from one pursuit to your next big idea.
The business has grown and will likely keep growing
The best time to sell a business is when the sale price you can command exceeds what you have invested in the company. Selling when the market for the goods or services you provide is strong will mean that buyers will willingly offer fair compensation for your company and its assets.
Selling when the market is strong allows you to maximize the price that you receive and ensures that buyers will at least temporarily enjoy success due to your hard work and the current economic circumstances.
When you are ready to retire or move to a new company
Perhaps you have received an offer to help restructure a company in an adjacent industry. Maybe you no longer feel the same level of passion about your business you once did because you would rather be home with your family, enjoying your retirement.
When your passion shifts or when work is no longer your first priority, running a business could be too much to manage. Selling the company because of a personal desire rather than optimal economic circumstances may also be a reasonable decision. Understanding the pros and cons of business transactions like selling your company can help you make the most of what you have invested in your company.