Taking Your Business to Market in 2013

If you didn’t sell your business prior to 2008 you may actually be fortunate. It may be hard to believe, but what if you had your big event (sold your business) and invested your gains in the booming market at the time? You probably would have lost 30% or more between 2008 and 2010.

If you left the money in the market, you may have made it all back if you let it ride, but most likely you would have been spending it on your retirement.

If you didn’t sell your business prior to 2008 and kept your business through the recession, you probably suffered some and had to work harder, but you may actually have a stronger business now. You may have fewer competitors.

Things may be looking up!  So is now the right time to sell? The market for sellers is strong right now with many buyers looking for quality businesses. Also, Bankers are now aggressively seeking deals to fund. Businesses that have been successful through the recession will be attractive targets for buyers.

However, there is still a tendency to try to sell a business for what one needs for retirement rather than understanding true value. Robert Palmer, of Insurance Designers in Overland Park, sent me this recent article from the Financial Advisor Magazine that gives a great overview to the selling marketplace from the financial advisor point of view.

The deals still have to make sense financially for the buyers and banks. This is a topic that we talk about continuously. Understanding what drives business value is critical to the ongoing success of the business and for creating wealth.  For more information contact an Apex Business Advisor.