There’s no one single answer…
BUT here are some important things to consider first:
🟦 You’re ready for change. Exiting a business has an emotional side. Be sure you’re prepared to hand over the reins and move onto your next ‘thing’.
🟦 Your business is stable and growing. Exit when performance is strong and consistent. Acquirers want to see steady revenue, profitability and a solid customer base.
🟦 You’ve maximised value. This takes time to achieve, ahead of your exit. Ask if there’s another level of growth you can achieve, to maximise the valuation?
🟦 Economic outlook. Markets fluctuate and impact acquisitions which rely upon debt to finance. So gauge where the economy is in the cycle. The outlook in your own industry also matters.
🟦 Capable management team. Bringing in the right people so the business can thrive without you, supports a stronger valuation and a stable transition period. That might not be the current team.
🟦 You’ve diversified. Reliance on a single offering OR customer OR both, creates a big risk. Broaden your offering and customer base as much as possible.
Unlike timing the market, smart preparations to maximise company value and accelerate your exit, are well within your control.
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