What about the Economy?

Can I sell my business in this economy?

Timing is everything, so they say.

I'm not sure exactly who 'THEY' are, but I don't believe "timing' is absolutely "everything".

Can you sell your business in this economy?  Of Course!  For prices that were fetched 5 years ago?  Well, that depends. 

Here's a list of questions to ask yourself if the question arises:

1.  Was my business affected by the economy?  If so, in what manner?

2.  What do my last 3 years of revenue look like?  Is there a major decline, or maybe just minor?

3.  How about my bottom line....is there one?

4.  What hard assets do I possess and what is their market value?

5.  How diverse is my customer base?  What would happen to my business if I lost my best customer?

6. Do I have any long term contracts that could sustain a transition to a new owner?

7. Would my customers stop buying if I wasn't the owner anymore?

8.  How niche is my product or service?  Can someone open up next door and be as good as me?

9. Can I wait to sell, or do I need to sell now? Can I afford to hold a note to get a fair price?

10. Do I have a lease and/or landlord?  What are the terms of my lease?  Can my business be moved or is it location specific?  Can my lease be assigned to a new buyer/tenant?

These are all great questions to help you determine whether or not now is the time to sell out or continue on.  The only question remaining is:  What are your answers?

Dan Mellbye

John Benjamin

Upcoming Finance Workshop

Keystone BS&A will be offering a new workshop on financing and accounting strategies to help small and medium-sized companies streamline their business practices for a maximum sale price. The workshop is open to anyone, but seating is limited so please RSVP as soon as possible.

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