Did you know?
49% of business owners state that market factors help them decide the right time to sell
49% stated, that the market factors help them decide the right time to sell. For 28% is is personal factors while for the remaining 23% it is the company factors.
(e.g., current economy, interest rates, inflation)
(e.g., ready to retire or begin something new)
(e.g., company performing better or worse than expected)
These three signs mean you're timing your sale right
Track the trajectory of your growth
Have you seen a clear pattern of current, and sustained, business growth? The timing might be right to sell. Plus, if your business is bringing in more than $5 million/year in EBITDA (Earnings Before Interest Taxes Depreciation and Amoritization), you greatly expand your pool of suitors, and thus can command a higher sales price.
Remember...
- A strong business with good prospects will be easier to sell than one that's underperforming. And buyers are more likely to pay a premium for it.
- You also don't have to sell the entire business at once. Consider a partial sale if you feel it's time to take some chips off the table and still want to have a hand in running it.
- If you still need time to grow, we can help accelerate the value of your business with our professional network of market strategists, investment bankers, industry analysts and more
How can UBS help?
We can help you understand the growth trajectory of your business and gauge whether it's time to exit or to stick with it for a bit longer.
Look at the macro-drivers
It’s good to look at the markets when timing a sale, but what about your entire industry? Is it on an upward trajectory (i.e. Artificial Intelligence) or slowing down (i.e. check-writing)? Also, your business is in a much stronger position if the economy is not in the throes of a recession and in the early stage of an expansion.
Remember...
- If your business occupies a unique niche in the marketplace, physical or digital, that's a strong differentiator–especially when the entire industry is expanding
- Stay on the pulse of current consumer, market and industry trends to gauge demand six months to five years down the road
- It is usually easier and more profitable to sell your business in a growing industry or upward market trend
How can UBS help?
Your UBS Advisor can connect you with market and industry experts who assess the current environment and can guide you in your deal.
The regulatory environment: a sometimes overlooked, yet powerful factor
From 2006-2016, certain sectors like healthcare, energy and financial services were in the crosshairs of regulators. This was not a good time to realize the maximum value for businesses in those industries. After executive changes in 2016, regulations eased the environment and those same sectors reversed course, increasing the value of those businesses.
Remember...
- Recognize the difference between net negative regulations and those that can actually protect your interests
- Keep an eye on the Fed’s decision to lower or raise rates, understanding how inflation impacts your business’s ability to borrow and in customers’ willingness to spend
- Assess the state of regulations with an expert, particularly someone well versed in public policy who has their finger on the pulse of pending legislation
How can UBS help?
Your UBS Advisor can connect you with policy experts within our UBS US Office of Public Policy for guidance.
Avoid common mistakes
Do you have a clear "end game" to exit your business?
Time the sale
Are you timing your sale with the market?
Know your buyer
Have you identified a buyer?
Manage your emotions
Have you looked beyond the sale price to your long-term goals?
Thrive after the sale
Are you doing everything you can to prepare for life after your sale?
Please select an option
