Chicago Business Broker

It Is Never To Soon To Start Thinking About Selling Your Business

Timing is Everything

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Timing is a key factor in the successful selling of one’s business.  Like any investment, there are external factors at work that have a significant effect on the value of your business.  Unfortunately these do not often coincide with your desire to sell.

There are hundreds of travel agents and small printers that wish they would have sold their company 5-10 years ago.  Their companies could have had the best, most profitable business models yet advances in technology and the internet rendered them all but obsolete.

That’s why it is critical that you know and monitor the market value of your company and keep in tune with the M&A trends, both micro and macro, that affect it.

What external threats exist for the longevity of my business model?

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This is a prudent and often overlooked question for business owners.  As the events of the past 5 years have demonstrated, there are many factors that are outside of our control that will ultimately affect your business.

These threats could be economic, competitive or technological in nature. The collapse of the housing market for an architect, the outsourcing of jobs overseas for a manufacturer or the e-commerce business model for a book store are all recent examples.

A good exit plan continuously looks for and evaluates these threats on an annual basis.  It puts contingencies in place that will allow an owner to either overcome them or exit their business before its value is significantly diminished.

This requires an honest and objective evaluation the business itself, the industry in which it operates and overall economic trends.  Due to an entrepreneur’s emotional attachment to their business it is often difficult, if not impossible, for them to do this evaluation themselves.  A good exit planner will help a business owner “see the forest through the trees” and make prudent decisions before it is too late.