When you first started your business, you probably did not think too much about selling it. If anything, it was probably a distant, non-specific, ‘and then I’ll sell up and retire’ plan rather than a rigid time and date.

As you progress through the phasesof business growth and ownership, and the immediate problems associated with setting up the business recede into the past –you will likely find yourself thinking more and more about your exit strategy. The question then, is when is the right time to sellyour business? Read on to find out...

When is it Time to Sell Your Business?

Does it feel right?

First, the time needs to be right for you. Are you ready to step away? Do you have something else you would rather be doing? Can you afford to retire from the sales proceeds from your business, or start over in a new career? If so, then you can start to think about other elements.

The price is right

Price is important, of course. Even if you are not mentally ready to sell, if someone offers you ten times the fair market value for your business, you are likely going to say yes. That scenario is about as likely as winning the lottery, though, so you will know it is time to sell when you believe the price you can demand is equal to or in excess of the amount you would be happy to walk away for. This could be skewed somewhat by your emotional attachment to the business –after all, you have probably spent many long days, weeks, and months building the business up and so you want adequate compensation for those long hours.

Stop at the top

A third good time to sell up is if you feel that you have reached the pinnacle of where the business can go under your stewardship. Maybe you think that a new business being launched nearby is likely to siphon away a significant part of your customer base, or maybe the technology that you built your business on is becoming outdated –either way, it is better to sell (if you can) before the downward spiral.

In summary

Ultimately, the right time to sell is a combination of these factors, as they apply specifically to you and your situation and goals. There is no textbook answer for when is right, as every business owner has different needs and desires –and it is these that will inform whether the time for such an important decision is right or not.

Pinnacle Pharmacy Group

You can get more help and guidance on selling your business by talking to Pinnacle Pharmacy Group. We have been helping digital health and pharmacy businesses navigate the world of mergers and acquisitions for many years, and have the skill and knowledge to help guide you as well.