Why is timing so important for the sale of your business?
Timing is crucial for the sale of your business. Here are some indicators of time for your consideration and review:
- Economic conditions – Recessions and currency swings can create a challenging market environment. It’s been 7 years since 2008 – so when is the next “big one”?
- Financial market – Capital Gains taxes and investment rates are the lowest in decades. Private buyers and equity firms have capital to invest – do you want to be part of this seller’s market?
- Industry factors – Downward pressure on oil prices has a positive or negative impact on many businesses. What industry trends impact your line of business?
- Personal health factors – Owners with less drive and energy to grow the business. Are you driving your business forward or is it running in “idle mode”?
- Business profitability – Sales and revenue are doing well and create an opportunity for a better sale price. Can it be improved and how?
- Competitive advantages – If you hold an advantage in your market, your perceived value is increased. Are there more aggressive competitors or new technologies entering your market place?
Adopting a proactive approach often determines when it is the right time to begin the sale process. Reactive exit planning and letting external circumstances dictate when it is time to sell will have a significant negative impact on the value of your business.
Many clients actively work with us on the “grooming process” to enhance their enterprise value and attractiveness to buyers. At Pavilion, our team provides a SWOT Analysis (Strength, Weakness, Opportunity and Threat) to review your current position and how you can add value.
A SWOT Analysis helps identify areas of growth and minimizes the potential impact from negative conditions. The depth and application of the analysis can be specific to a single objective or can be broad to reflect on the key areas of your business, including:
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How can Pavilion help?
Pavilion Business Services is here to prepare your business for success and growth in the years leading up to putting the business on the market.
A SWOT Analysis provides market and industry insight and guides an internal review of the company’s performance. Pavilion’s collaborative approach provides clarity of thought and fresh solutions to your unique objectives.
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