Top 25 Tips on When to Sell Your Business from the Pros

 

 

Top 25 Tips on When to Sell Your Business from the Pros

 

1. You Don’t Have the Energy, Skills, or Resources to Grow the Business

Michael Roub, Managing Partner, Inflection 360

One of the good reasons to sell a growing business is if you think you don’t have the energy, time, experience, skills, and other resources to take the business to the next level. A business should continually grow, and as business owners, there will come a time when you’ll feel you can’t do it anymore. This is the right time to sell your business and entrust it to those who have the skills and resources to take it further.

2. You Want to Take Advantage of Low Capital Gains Taxes

Gene Marks, Owner, Marks Group PC

The tax rate on capital gains is at an historically low level. This is one good reason to sell your business and enjoy low tax rates. If you are at an age near retirement, or if you have already grown and stabilized your business, then it’s best to sell your business and take advantage of taxes at such relatively low levels.

 3. Your Business’ Value Has Improved Significantly

Pamela Wasley, CEO, Cerius Executives

When your business has grown substantially, it might be time to consider selling it. Running a business is risky, and the bigger you get, the bigger the risks you have to face. The value of your business is not liquid until you go through the transaction of selling your company.

 

4. You’ve Been Offered a Better Job Opportunity

Tom Gesimondo, President, Transworld Business Advisors

One reason why some business owners sell their business is that they have a job offer which they can’t resist. This new job opportunity will pay them more than what they earn from their business, less the liability and other demands of owning a business. While it’s kind of ironic to get back to being an employee after being the employer, this kind of opportunity is the best option for some.

5. Also for one of the following reason

When your business has grown substantially, it might be time to consider selling it. Running a business is risky, and the bigger you get, the bigger the risks you have to face. The value of your business is not liquid until you go through the transaction of selling your company.

The tax rate on capital gains is at an historically low level. This is one good reason to sell your business and enjoy low tax rates. If you are at an age near retirement, or if you have already grown and stabilized your business, then it’s best to sell your business and take advantage of taxes at such relatively low levels.

One of the good reasons to sell a growing business is if you think you don’t have the energy, time, experience, skills, and other resources to take the business to the next level. A business should continually grow, and as business owners, there will come a time when you’ll feel you can’t do it anymore. This is the right time to sell your business and entrust it to those who have the skills and resources to take it further.

There are different reasons why business owners choose to sell their business. While you have invested your money, time, and energy to build and grow your business, there will come a time when selling it might be the best decision you can make. We spoke with the industry experts to help you identify when to sell a business.

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