Will 2021 be a good year to sell your business? As we enter into the new year this could be a question you are asking yourself. In the midst of a pandemic and recession, many businesses will not make it out of 2020. However, there are many businesses that have been thriving that are attracting eager buyers.
Buyers are very interested in buying good profitable companies. As we look at the businesses that have been profitable this year, we see most in the healthcare, distribution, construction, manufacturing and service industries. These businesses have stood out in 2020 and buyers are eager to enter into recession proof markets.
If you are looking at selling your business in 2021 the time to start the process is now. The average time it takes to sell a business is 6-10 months. To expedite this process, here are some key things to get in order:
- When it’s time to put your business on the market, make sure your financial paperwork is clean. Income statement, balance sheet and tax returns are just some of the documents a buyer will want to review.
- Develop your exit strategy
- When you sell your business, will you stay on during the transition? Or will you step away immediately to begin your next adventure? What happens after the sale is as important to think about as the sale itself, particularly if you have a team of trusted employees.
- Determine your business value
- Our office includes an accredited business valuation specialist who will work with you to determine the value of your business using an earnings multiple.