Sell or Wait? Business Owners Who Want to Exit

Many variables affect the selling price of a business.  One factor which has caused company owners to retreat to the sidelines has been the economy.  But will a stronger economy necessarily increase the value of a business?  Perhaps not as much as a seller would hope.  But the advantage to riding out the economic downturn is that it may give the owner time to increase the company’s value by  strengthening its infrastructure.  Cash flow, assets and net profits are the fundamental components that create value.  Increasing the value of a business takes time and discipline.  Certainly a bad economy makes it harder to build value, but without the right systems in place prosperity will be perpetually elusive.  So the question of timing may hinge not on outside economic influence, but rather on internal framework.

How has timing affected your decision to buy or sell a business?

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