(continued from March 3, 2014 blog post)
While doing a formal business valuation report, one must analyze the local and national economy at the time of valuation. However, to apply this to a potential sale, it is important to go a step further and plan on how the economy fits in to a specific sales process or company life cycle. Selling a company in a good economic environment often results in a better valued transaction, all other things being equal.
Industries vary and grow differently depending on the state of the economy. To orchestrate the most successful transaction for your company, it is important to be patient for the times that allow for better selling environments.
We are often called upon to help our clients with strategic plans for the company to help them operate more efficiently in different economic environments. This results in illustrating lower risk to potential buyers due to the company’s ability to weather potential economic storms.
Consequently, we are also able to help plan a sale for a better economic time. The economy is always changing and it is important to make time your ally and not your enemy!
In our next post, we’ll talk about the mindset you need to have when preparing your company for sale.
To your success,