It is not a simple process and there’s no one perfect way to do it, however, there are a few fundamental steps that will make the process easier, a successful sale will involve the right people, the right price, and the right process.
What’s the best time to sell your company?
The best time to sell your company depends on a number of factors, it’s easiest to sell when the company is at its peak.
If you’re looking to sell your company within a few years, you’ll want to keep your head above water, and if it’s been a few years since you’ve been in the public eye, or if now is a time of major change in the industry, now might be a good time to sell.
How will your company be valued?
There are a couple of ways to value your company, if you’re looking to sell my company now, you’ll want to consider a private sale.
A private sale is the best way to get the biggest return on your investment, if you want to sell a few years down the line, it’s best to use a public sale.
If you’re looking for a quick sale at an attractive price, a public sale might be your best option, make sure to value your company realistically, there are a lot of variables when it comes to determining the value of your company, including industry trends, size, location, and current employee engagement.
What process should you use to sell your company?
There are a few different ways to go about selling your company, each is going to have its pros and cons, and you’ll have to decide based on your specific situation.
In a private sale, you’ll have a much easier time setting the price and getting the most return on your investment, however, a private sale will likely take longer to close.
With a public sale, the price will likely be higher, but you’ll have the advantage of being able to sell more shares, if you choose to sell your company through a public sale, you’ll be able to sell shares easily enough.
On the other hand, you’ll have to go through a more rigorous process to prepare your company for a public sale, startups, and growth-stage companies, if your company is in the early stages of growth, or is still in a startup phase, selling it might be a good idea.
Your company will likely be less mature than other companies in your industry, making it a much easier sell. On the other hand, there are fewer opportunities to grow or make money with a startup, you can expect a quicker return on your investment if you decide to sell your company, but it will be difficult to sell for a large amount of money.
If you’ve been in business for a few years and have high-profit margins, you might want to consider selling your company and you’ll get a quicker return on your investment, but the process will likely be much longer.
Bottom line
Your company is probably the most important asset you’ll own, so it’s important to get it right, remember, selling your company isn’t something that happens overnight, so you’ll have to take your time, crunch the numbers, and consider your options carefully and if you can’t decide when to sell your company, you can always defer the decision to a later date.
