Some women business owners may be asking, "Is it time to sell my business?"
Ideally, the best time to sell a business is when the economy is robust. But there may also be other times that are right for a woman business owner to sell, including a planned retirement, changed life circumstances or even starting a new entrepreneurial venture.
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Circumstances that may influence your decision to sell include:
- •Trends and conditions. Industry trends, economic conditions, buyer activity and a company's overall performance may contribute to optimal timing.
- •Profitability. A smart owner buys low and sells high. Selling may be the best choice when the company is at its peak, with strong cash flows and lower perceived risks. During this time, buyers may be willing to pay a premium price.
- •Escalating growth. Growing companies may be more attractive to buyers.
- •Lower interest rates and higher lines of credit. Lower interest rates and higher lines of credit may make it possible for buyers to pay more when purchasing a business.
- •Industry consolidation. If the industry is expanding and there is a trend toward acquisition and consolidation, it may be a good time to consider selling.
- •Lower labor costs. Reduced labor costs may make a business attractive to potential buyers, as lower costs may increase profits and the value of the business.
- •Lifestyle changes. The entrepreneur's interests or life circumstances may have changed.
- •Planned retirement. The timing might be right to retire.
- •Unplanned circumstances. The death of a spouse or business partner, or relocation to another city or state may make it an ideal time to sell.
If you're considering selling your business, seeking advice from your banker or financial advisor could make the decision an easier one.