Is Spring a Good Time to Sell Your Business?

Selling a business is generally a long process; it can often take 3-12 months from the time you list the business until the sale closes. For this reason, it is a difficult process to time. That said; buyer inquiries tend to increase during the month of January as well as during the spring and fall. This means businesses listed during these times of the year can receive greater interest. Sell a Business

While there may be certain months and seasons when buyer activity increases, these are not necessarily the best times to put your business up for sale. You need to consider several other factors as well. For example, some businesses (such as CPA practices) are more seasonal, with higher revenues during certain times of the year.

The truth is the best time to sell a business has little to do with the season, and much more to do with the condition of the business for sale. In other words, the ideal time for you to sell your business is when it is performing well and most attractive to buyers. So if you want to receive top dollar for your business, you need to make sure you are optimizing opportunities to increase its value.

Here are some areas of the business to address to enhance its value to potential buyers:

Organize your Financial Records: One thing that will turn off prospective buyers in a hurry is when your bookkeeping and financial records are confusing. A buyer should be able to easily understand your books and be able to make an informed decision based on past sales, profits and other important records.

Enhance Operational Efficiencies: Look over your technology, equipment, workflow processes, and other areas of operation to identify areas you can improve efficiencies. In some cases, this may mean investing in technological upgrades. But if these upgrades can quickly provide a strong ROI, it will be well worth the investment.

Explore New Ways of Effective Marketing: A buyer wants to purchase a business that not only has a strong history of profitability, but is also trending upward. One way to accomplish this is to look into new marketing methods that can reach your target market in a cost-effective way.

Make the Business Less Dependent on You: As you prepare to exit, you need to diminish your role in the company. This is often the most difficult step, especially if you have dedicated many years (or decades) into building your business. At some point, however, you need to let go of the reigns and turn them over to others who can assume important roles that can be carried on under new ownership.

Speak with a Business Intermediary: Some other ways you can make your business more marketable will depend on the specifics of your organization and industry. Consulting with a business intermediary (particularly one who deals regularly with businesses like yours) can be a strong step toward positioning your company for a successful sale.

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