It seems like we’re at a fork in the road: there are some positive signs that the economy may be turning around slightly, but at the same time consumer and overall confidence in the economy is non existent.
It’s precisely because we’re at this inflection point that we see a lot of business owners considering the eject button. If you’ve been thinking of selling your business, here are six reasons to get out now:
1. You’ve lost the stomach for it
A lot of business owners took 2007 and its aftershocks in the teeth. If you’ve got your business stabilised and the prospect of fighting through more pain leaves you panic-stricken, it’s time to get out.
2. The worst is behind you
Let’s say you were mentally getting ready to sell back in 2007. Then 2008 hit, and 2009 was your worst financial year in recent memory. You cut everything you could in 2010, showed a profit in 2011 and now you’re starting to see some profit and revenue growth. With your numbers going in the right direction, now might be just the right time to get out.
3. The tax man is coming
Governments around the world are looking for money to fund the cost of an aging population. Will the capital gains tax rate keep going up?
4. Nobody is lucky forever
If you’re lucky enough to be in a business that actually benefits from a bad economy, congratulations. You’ve probably just had the three best years of your business life. But no cycle lasts forever and right now may be a great time to take some chips off the table.
5. The coming glut
As a business owner, demographics are not on your side. As the baby boomers start to retire, we’re going to see small businesses come on the market. That’s great if you’re buying, but if you’re a seller, you may want to get out ahead of the flood.
6. A good time to be liquid
The stock market has been swinging wildly lately which is why it would be nice to get liquid. With cash in the bank, you will be able to take advantage of a fire sale on the stocks of good quality companies should the market sink.
If you feel like a gambler at a blackjack table with everything riding on the outcome of one hand, it may be the right time to take a few chips off the table.
Wondering if you have a sellable business? The Sellability Score is a quantitative tool designed to analyze how sellable your business is. After completing the questionnaire, you will immediately receive a Sellability Score out of 100 along with instructions for interpreting your results. Take the test here:
http://sellabilityscore.com/parfrey-murphy-chartered-accountants/seamus-parfrey