When is Selling a Business a Good Idea?

Selling a business doesn’t have to mean that it’s not operating successfully. Sometimes, the best time to sell a small business is precisely when it’s doing well. Doing so can lead to bigger and better opportunities. Here are some factors to consider when deciding whether to sell your company.

How to Know Selling a Business is the Right Choice

  • Value of business – Running a business is a risky proposition. Roughly 90 percent of start-ups raise under $20 million and last less than two years before they go under. Realistically, the longer you follow the dream you started with for your company, the riskier it gets. By knowing that the value of your company will eventually peak, however, you will have an edge in knowing when to sell.
  • Potential buyers – You can’t sell your company if no one is willing to buy it. To determine if larger companies are interested in purchasing your business, consider setting a meeting with one of said company’s business development teams. If there is interest, you can go about the process of negotiating a deal for you and your company.
  • Current personal circumstances – Running a start-up is a stressful, time-consuming process. A founder may have the time and energy to run a business at the point of its founding, but that can quickly change. You could have gotten married and/or had kids. Maybe, you’re just tired of taking risks and are looking for more stability. These are all valid reasons to sell.

Start-up culture is fast-paced. Successful entrepreneurs got where they are by understanding when to sell their companies. If your business isn’t getting a foothold in its niche, the faster you can sell it and move on, the better. Selling a business requires understanding it’s worth, an endeavor which an experienced business lawyer can lead you through.

Garland & Mason, LLC is a New Jersey business law firm that handles matters such as business litigation, real estate law and business transactions.



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