These might be additional reasons the timing might be right.
A sale is sometimes necessary due to the health of the owner. Structuring a deal for a quick sale due to the owner’s health does not have to be for a lower price. A seller can set up a low down payment and an owner financing note for a longer period of time which will keep the sale price at the highest justifiable level, while getting the owner out quickly.
In addition to being ready to sell and having a solid profitable business, the economic marketplace must have its “stars” aligned in order for it to be a good time to sell.
A business doesn’t run in a vacuum. External forces not only affect the growth of a business, but also its marketability. An ideal scenario to sell is when there is a strong economic environment of low interest rates, a growing stock market, a strong dollar, low inflation, low taxes, and a solid availability of capital. It is always a good idea to keep up with economic trends. While a bad economic setting does not help a sale, a good, profitable business will sell in good or bad economic conditions.
Shorter Stick Loses the Fight
If it were not for capital concerns, many business owners might never sell. There comes a point when the continued worry of funding accounts receivable, payroll or the rent will push a business owner over the edge. A business can actually become harder to handle financially with increased cash flow, even though there is more money generated by the business.
There is also the dilemma of growing a business to its maximum point and not being able to go beyond due to a lack of funding or managerial ability. You say to yourself, “If I just had some more capital I could do X, Y and Z and double the business.” We’ve represented many owners who have reached a comfort level in their operations and do not want or feel comfortable with investing more capital to get the business to the next level. This is similar to burnout. A business will flatten out due to a lack of owner motivation. The salability will suffer and the sale price will be reduced if the owner stays put in this condition.
From the book, Swinging Doors, A Guide to Selling Your Company, by Chad Peterson