Why the timing of a business acquisition is so important
Choosing the right moment to sell your business is not an exact science, but timing does have a big influence on the final deal. Both the value of your business and the course of the sales process depend greatly on:
- The performance of your business;
- The economic situation;
- Your personal motivation;
- trends in your industry.
The trick is to find the right combination of business and personal timing.
5 signals that it is a good time to sell
1. Your business is growing and performing well
It may seem contradictory, but it is precisely in the prime of your business that you sell best. Buyers are willing to pay more for healthy businesses with growth and profit potential. Waiting until things are down reduces value and makes buyers more reluctant.
Selling at a peak provides the most strategic as well as financial benefits.
2. There is a lot of interest in your sector
Some industries are "hot": businesses are in high demand because of economies of scale, technology, personnel or market share. If your industry is popular with strategic buyers or investors, that's the time to step in.
Florijnz regularly identifies spikes in acquisition activity by sector. We help you read the market.
3. You have personal reasons to wind down
Whether it is your age, health or the desire to do something new, your personal motivation counts. It is important to start on time, so that you remain in control of the process rather than having to react to external circumstances.
Good timing also means: selling on your own terms.
4. You have succession in mind or not
If your business depends on your knowledge or commitment, that's a risk for buyers. But if you have already arranged for succession internally, or are willing to follow along for a while after selling, that increases your marketability. No successor? Then now is the time to start a focused search or prepare for transfer.
5. You have time to prepare well
On average, a sales process takes 6 to 12 months. So the best time to start is before you need to sell. This way you can prepare your business for sale, achieve an optimal valuation and find the right party.
Too early does not exist. Too late, unfortunately, does.
What if you wait?
Waiting seems safe, but can be risky:
- Market trends can turn;
- Your energy or health may be declining;
- The value of your business may decrease with lagging numbers;
- Buyers may drop out due to lack of preparation.
What can Florijnz do?
Florijnz guides entrepreneurs in planning and executing a successful business transfer. We always start with a realistic valuation, a sales scan and a conversation about your goals. Together we determine whether now, later or soon is the right time to move.
Are you unsure about the right time to sell?
Read more about selling a business or contact us for a no-obligation initial consultation.
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