With all due respect to The Clash, as the New Year is in full swing, we have fielded a number of inquires about the general state of the market. Entrepreneurs are asking themselves – do I have another year or two (or five) in me?
Have you been thinking about selling your business but just can’t decide if now is the best time? Do you find yourself repeatedly reading Twitter, Facebook or (gasp) an actual newspaper and analyzing the economic situation and wishing you could see into the future? You are always going to be able to find data that support reasons to keep going and as many to hang up your hat, but if you’re on the fence and can’t quite decide whether or not to pull the rip cord, here are five reasons you might want to consider getting out now.
1. You’re less interested in fighting the good fight
A lot of business owners took COVID in the teeth and now see signs of a potential recession (It’s a word thrown out by a lot of PE firms to us recently). If you’ve got your business stabilized and the prospect of possibly having to fight through a potential recession leaves you panic-stricken, it could be time for you to get out.
2. The worst is behind you
Let’s say you were mentally ready to consider selling a few years ago and then 2020 hit and 2021 was worse, and you made cuts and adjustments, so now you’re starting to see some profit and revenue growth. So do you hang on or leave some meat on the bone for a buyer. With your numbers going in the right direction, it’s easier to sell to a new buyer that the worst is behind you and your business is resilient – now might be just the right time to make your move.
3. The tax man is coming
Governments around the world are looking for money to fund the cost of an aging population (and their increased spending during COVID). If you have exhausted all of your tax planning avenues and are just fed up with giving more and more to the Feds, it may be time to consider a change.
4. Nobody is lucky forever
If you’re lucky enough to be in a business that actually benefited from COVID, congratulations… you’ve probably just had the three best years of your business life. But no cycle lasts forever and right now might be a great time to take some chips off the table.
5. The coming glut
As a business owner, demographics are not on your side. As the baby boomers start to retire in droves, we’re going to have a glut of small businesses coming on the market. That’s great if you’re buying; but if you’re a seller, you may want to avoid the flood and head for higher ground now.
These are all questions you can regularly ask yourself. If you’re wondering more broadly about how your business stacks up, take the13-minute Value Builder Score questionnaire and find out…. Click Here