Posted by u/exit_curious
When should I sell my business?
Answered by Ask a Shop Owner ·
Been running 12 years. Making good money but tired. When is the right time to sell?
u/askashopowner Owner-operator advisor
Top answer
The right time is 2 to 3 years before you are ready. Businesses sell for the most money when they are growing, the owner is still engaged, and the books are clean. If you wait until you are burnt out, the buyer smells it and the multiple drops.
Get a valuation this year (many brokers do a free one). Do not list, just find out what you have. Then you have 2 years to fix the things that hurt the valuation (owner-dependence, messy books, customer concentration).
Businesses that owners took 2 years to prepare sell for 30 to 60 percent more than businesses listed cold. Same business, same cash flow.
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