You are considering to sell your business, but what is the right time? To properly answer this question, we can look at it from two angles; the entrepreneur and the business.

The right time for the entrepreneur

We first take the angle of the entrepreneur. The question of whether this is the right time to sell from the entrepreneur’s perspective can only be answered by yourself. To arrive at a good answer, you can ask yourself why you want to sell your business. For example, if you are stalled in the growth of your business, one solution may also be to expand your team, or find an additional shareholder. If you want to do something else, then the terms of the sale are of additional importance. But if you want to prepare for retirement, a scenario in which you gradually handover activities, for example, can be an interesting approach.

The right time for the company

The next question is; is your business ready? We have already touched briefly on sales readiness as a stage in the process of selling a business. If you would like a first impression of the readiness of your company for a sale, you can have an exploratory talk with one of our corporate finance advisors. Depending on your specific situation, they will ask you the questions below and elaborate on your answers:

• Is intellectual property secured?
• Are client agreements clearly defined?
• Are all contracts and contacts accessible in, for example, a contract management system and CRM system?
• Is middle management capable and committed to the enterprise?
• Is the ICT environment in order?
• Is there enough talent within the organization?
• Are roles and responsibilities well defined?
• Are the certifications up to date?
• Does the company meet all regulatory, licensing and AVG requirements?
• Are there claims and or tax risks?

Sparring with an advisor about the right time

If you would like to know if this is the right time for you to sell your business, please feel free to spar with one of our corporate finance advisors. FBM Corporate Finance has guided many transactions. Therefore we know the process well and have a broad network for sale and purchase. The advisors of FBM Corporate Finance assist entrepreneurs in a personal way. Feel free to contact us for a cup of good coffee.