The First Step in Research

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HamsterOpportunities can disappear in a blink of the eye!  Engaging in business acquisitions requires buyers to act quickly and assertively. There is quite a bit of activity in the market with many buyers looking for businesses to purchase. The best businesses go fast! If you have been looking at businesses for a few months, or years, you know when good businesses become available.

But potential business buyers repeatedly miss out on deals because they hesitate, want to do all their research up front, want to talk to bankers, industry associations, or do other things that keep them from making a decision. By the time they start to get comfortable with the opportunity, the business is already under contract. This happens time and time again. Don’t do the research hamster wheel.

The first research step should be meeting with the seller. What better way to find out about the business and industry! There will be plenty of time to thoroughly examine the company after the meeting, and the research will most likely be much more efficient.

Why do tons of analysis on a company, meet with advisors and then decide not to move forward after interviewing the seller? Another advantage to meeting with the seller prior to conducting time-consuming research is that he or she could potentially give clues as to what a buyer should be reviewing.

Don’t miss out on that deal that you’ve been waiting for!  Talk to your Apex Business Advisor for more information on buying or selling a business.

Doug Hubler
President

When is the Right Time to Sell?

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timetosellKnowing the best time to sell can be a real challenge.

The absolute best time to sell is when you don’t have to sell. Meaning that business is booming, the market or industry is strong, you are healthy, you have a wonderful marriage,  and you still enjoy going to the office. (Sounds like rainbows and butterflies.) You and your business are successful, and you are in an absolute position of strength! The value of the business is probably at its highest point, or “Apex”.

But having all these variables at their best at the same time is fairly rare. So if things aren’t perfect, when should you consider selling?

It depends. Much like trying to time the stock market for the optimal moment to buy or sell, it doesn’t usually work too well. Instead, focus on the facts and try to leave the emotions out of your decision. You should seek advice from your trusted professionals or peers who will best understand your situation.

In general, if you aren’t at the peak of business success, it is best to start the selling process when:

  • you don’t have the capital to invest in growing the business
  • you feel your energy level to operate the business is decreasing,
  • your excitement is waning,
  • you are feeling stagnant,
  • you are not sure what else you can do for the business,
  • or if you think your skill level is falling short of the needs of the business.

However, to get the highest value for your business, it could take several years of planning and preparation. So start the process while things are going well!

Talk to an Apex  Business Advisor about your situation to determine the right time to sell  your business.

Our next Buyer Seminar will be held on March 25th. We will be discussing the Buyer Search Program. Keep an eye open for registration information.

Doug Hubler
President