When contemplating selling your business, there are a number of things to consider in order to know if you and your business are ready:
What is your business worth? Don’t even think about selling until you know what your business should sell for. Are you prepared to lower your price if necessary?
When is the best time to prepare? There is an often-quoted statement in the business world: “The time to prepare your business to sell is the day you buy it or start it.” Unfortunately, that advice is very seldom adhered to. Now really is the time to begin preparing for the day you will sell your business, so it will be ready when you are ready to move on.
Is the business flourishing? Most sellers don’t decide to sell their business until things are not going well. But if you want to get maximum value, sell when business is good.
What are the tax implications? Ask your accountant about the tax impact of selling your business. Do this on an annual basis, just in case. However, the tax impact is only one area to consider, and a sale should not be predicated on this issue alone.