The answer is: Before the next recession!
The recent stock market corrections should cause some worry for private business owners, especially those in the baby boomer generation. A recession is likely to come soon – perhaps very soon. Since 1960, based on NBER data, we have had eight recessions, with the longest period between them ten years, from March 1991 until March 2001. The recent Great Recession ended officially in October 2009. We have now had more than nine years since the last recession, so we are due.
Public businesses and private businesses do not fluctuate in value together – investors in public businesses try to anticipate the future and the value of the shares of the business will change quickly. Private businesses are affected more by the state of the current economy, which means there is a lag until it impacts the business during an actual recession. In layman’s terms: You need to sell your business when the economy is hot to get its top value.
In my experience, it typically takes a year or more to sell a private business and even longer to implement a plan to obtain its maximum value. Don’t wait. You need to start planning NOW. A solid exit plan is like an insurance policy for your business, protecting your wealth and all your hard work. Stony Hill Advisors call this planning Exit Value Planning. You only sell your business once, so you must have a plan for success.
Here are the ways that Regeneration Advisors can assit:
Exit Value Planning: It is never too early to have a plan that increases the market value of your business.
Valuation: Call us for a valuation of your business – no obligation.
Client Representation: We can find the best acquirer for your business.
If you are considering the sale of your company now or in the future, call me at 732-804-6128.
There is no obligation to move forward and your inquiry will be kept strictly confidential.