Monday, 20 January 2014

When is the Right Time to Sell Your Business?

With the global economy moving out of recession many people are feeling more confident about making a profit on the  sale of their business. In light of this at the RTA Business Consultants Blog we decided to examine the issue in greater detail.  So when is the right time to sell your business?

RTA Business is a company that specialises in business acquisition. We have developed a reputation for aiding our customers in selling their business for an admirable profit margin. This means naturally we’ve had to analyse what goes into selling a business.

One core principle that we’ve strictly adhered to in becoming one of the UK’s largest business acquisition companies is that timing is everything.

This is a principle which applies to many areas of life. If you for example are looking to approach a company for a business deal, you can’t do it at any time. You have to watch and wait, see when their circumstances are more likely to lead them to be receptive to such a deal. Timing can often be the difference between failure and success.

So what are the rules of timing in business acquisition? The first one is one we’ve already touched on. Watch the market for your industry. We’ve already mentioned that the global financial recovery has meant that it’s more profitable to sell your business.

However you also have to watch your individual market. Markets rise and fall all the time; current affairs often see prices fluctuate on a daily basis. However if you watch and analyse your market you’ll be able to spot trends; use these trends to indicate when your business will be more lucrative to sell.

The next crucial element to consider is profitability. Has your business reached its prime profitability to sell?
The logic behind this is that a buyer will not want to purchase your business if they won’t make any money. It’s more about potential .They need to see that they have the potential to make money. If your business doesn’t have any potential prospects, it’s not going to sell.

The third factor is the buyer itself. Are there the buyers out there to actually buy your business?
This may seem obvious but it really isn’t. If you’ve built up a business on an idea that hasn’t fully caught on in the wider business community, there isn’t going to be someone you can sell to. They won’t have had the time to develop. There’s no point putting your business up for sale if there isn’t a buyer out there.

Timing is everything in this world. Make sure that when you decide to sell your business, you get the timing right. RTA Business would be happy to help you find the perfect time to sell your business.

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