This is one of the most talked about topics in business strategy. When is the best time to sell, close or sell a business? How long do you have to wait from the moment of creation before saying goodbye to your business?
In truth, it depends on the circumstances.
It depends on the type of business, industry and your personal goals and objectives.
In a lifestyle business, i.e. in a business that earns just enough to bring the owner a decent income, the owner may decide to close the store upon reaching retirement age without worrying about identifying, contacting and negotiating with potential buyers for the business.
Not all businesses can go down this path – and owners too.
Many entrepreneurs will want to get compensation for the blood, sweat and tears they have invested in the business over the years, in the form of a “fee” from the new owners. Obviously, this requires careful planning, preparation and preliminary negotiations – in fact, business owners often find that the time when they decide to leave their business is often the most stressful time management.
Therefore, it is important for these types of enterprises to plan their exit strategies in advance when the owner is in a less stressful environment and has a much more objective and calm mindset.
We often recommend that the optimal period between planning and actual business completion is about 5 years.
But of course, this can vary depending on the goals and objectives of the company, industry and business owners, as mentioned earlier.
When it comes to doing business, in most cases it is even more difficult than selling a business on the open market or internal or external management teams.
It is very unlikely that you will be able to trade shares of your company on the London Stock Exchange, as it is dominated by large companies. A more realistic expectation would be placement on AIM or PLUS.
But without a reliable revenue stream and robust growth prospects, you can completely eliminate the option of accommodation.
Again, while it’s hard to predict if your organization is right for an IPO initially, it’s always helpful to plan ahead and work on your exit strategy from day one. – Prepare your business for a final settlement. Day.
So, answering the question, what’s the best way to go out of business? Again, it depends on the circumstances, but usually it should be a positive time for the business, but not too positive in the sense that under the new owner (-ah) there is still room for growth.
If you plan to leave your business soon, call us on 01709 810081 to help you get through the whole process and maximize the value of your business.