Is Now a Good Time to Sell Your Company?
While there is no definite answer to this question, marketing research suggests that the market will be soon flooded with businesses for sale as more and more baby-boomers reach retirement age. In the USA, the majority of business owners appointed their age to be the primary reason behind selling their businesses. Another survey supporting this argument found out that three-quarters of the US business owners with revenues between $1 million and $150 million are likewise looking to sell within the next three years. Despite all of this, the number of baby-boomers in Thailand is significantly smaller than in the West and, therefore, the situation is likely to only occur on a smaller scale.
Disregarding the aging population, there are naturally more reasons to sell your company now. One of the most common reasons for any owner to sell is the so-called burn-out. After many years of running the business, owners naturally get tired and may actually let it slide – whether it is the occasional loss of a customer and not replacing it or declining standards for the company.
Even when this happen, some owners fall into a trap of thinking that their sliding business is down due to bad economy or other reasons (usually something beyond our control) and decide to hold off in a hope that the company will grow and increase its value. In certain scenarios, this may work and in others, businesses start sliding even further as other outside factors enter the equation, such as new and more energetic competitors.
Ultimately, the answer is up to each owner. The common wisdom says that the business owners should start planning their exit strategy on the day when they start their business. Relying on outside factors, such as interest rates or legislative, can be a race on a long track and quite risky. Perhaps, when reading this far, you may take it as a sign that you are ready to sell your business now. Should you need assistance with installing an Exit Strategy or evaluating your business, contact us today.