Many factors will determine when it’s the right time to put your business up for sale. Sometimes the deciding factor will be your own personal situation or the needs of the business itself. However, once you have made the decision to move on, it can also be worthwhile thinking about the best time of year to sell your business.
Why Does Timing Matter?
A profitable business can attract buyers at any time of year, but changes in the market and the number of people who are looking to buy can make a big difference to the sale. If more people are looking for businesses to buy then you are likely to get competing bids and that increase prices and the ability to secure a quicker sale. For most businesses there are a few key times of year when demand is likely to peak.
Selling Your Business in the New Year
The beginning of the year is one of the best times to put a business up for sale.
- Most of us start the New Year with a fresh outlook, ready to make changes and seek out new challenges. This can include finding a passion and leaving the ‘rat race’ behind. The New Year sees an uplift in potential buyers and enquiries coming through for many brokers as a result. Selling your business at this time of year can generate more interest while demand is high.
- Selling a business can take time. By starting at New Year, you have a good chance of finding a buyer before the summer when the volume of enquiries reduce as people disappear off on holiday. If you’re really lucky, you might even find a buyer and complete the whole sale process before the end of the tax year. However, it’s important not to rush into a deal just to meet an arbitrary date. Take your time to find the best buyer for your business.
- Traditionally, Christmas is a busy and profitable time of year for many businesses, so it can put you in a good position to prepare your business for sale. You may have some extra funds on hand and you’ll have more time to spend on negotiations in the New Year. If you are a seasonal business and Christmas is your busy time, take a look at our advice on timing your sale
Jan 2021, is looking like it will be as unpredictable as the rest of 2020. Businesses across the country are still locked down or operating at reduced capacity and whilst we had hoped for an easing of Covid-19 restrictions, we have the opposite.
Business sales during 2020 have continued. Good, sound, profitable businesses have been selling. They may have taken a little longer to complete, but buyers are able to see past the effects Covid-19 have had to the stable business underneath.
Buyers who weren’t able to find the right business last year will be looking out for new opportunities in 2021, and that could be yours.
First Steps to Sell Your Business
Even if you’re not quite ready to sell now, you can still take advantage of the positive attitude that the New Year often brings in by taking steps to prepare your business for sale. Take some time to get your books in order or deal with any issues that could lower the value of your business.
Get to know the local market so you have a better idea of how much your business is worth. Talk to an experienced business broker to find out more about the process, what support is available to help you sell and how long it is likely to take. If you’re planning to sell your business in the New Year, then Business Partnership can support you through the entire process, from getting the initial valuation right up until you complete the sale. Find your local broker who can guide you through the market during the New Year and beyond.