The national average is approximately six months from the decision to sell to the closing of the deal. The actual timing can vary based on a number of factors including the deal structure, asking price, the local market and even the time of year.
Ideally, the best time to sell your business is when sales and profits are up and financing is available for buyers. However, determining the best time to sell a business is based on more than just profit potential.
The value of your business will be based on several factors including the market value of assets, earning potential, cash flow, and return on investment. Other considerations include the terms and structure of the deal.
The only way you will know you’ve found the right one is if you’ve looked at multiple that weren’t. After exploring a few options, you will get a feel for how businesses are presented to the market and start to recognize the factors you like to see in prospective acquisitions.
Consider what area (state, town, etc.) you want your business to be located in. Determine how much cash flow the business will need to have in order to cover your debt service and living expenses. Think about the industry and what experience you do or don’t have.