Four Signs You're Ready To Sell Your Business To A Private Equity Firm


For some entrepreneurs, the thrill of starting a business from scratch is the best part and plodding along with the same business after it's established is less exciting. If this sounds like you, you may want to find a private equity firm to take your current business off your hands and continue developing it while you move on to exciting new startups. But before you start looking for a buyer, make sure your business is at the right stage to take this next step. Here are four signs you can look for to help you decide if you and your business are ready to get in touch with a private equity firm and make that deal.

1. You've saved up enough documentation to prove that your business is profitable

When you start entering into negotiations for the sale of your business, you need to have all the financial documentation sorted out. If you've hired good tax preparers, accountants, and financial planning professionals, your papers should be in good order. Having documentation that's well-prepared and well-organized and clearly shows that your business has been successful so far can go a long way toward attracting potential buyers who want to invest in low-risk businesses.

2. You have the right professionals working for you

Just because you've grown a successful business from scratch doesn't mean you know all the ins and outs of selling one. Having professional help during this period will help protect you from getting the short end of the stick when you make the deal. Be sure to find a qualified accountant, financial advisor, and attorney before you even start looking for a business broker.

3. Your business is growing but stable

You don't want to sell your business while it's still in its infancy and needs you to nurse it along. If it's still growing but mature enough to remain stable through a change of ownership, now is the perfect time to sell it. Don't make the mistake of waiting too long, because if sales start to go down, so will the market value of your business. 

4. The market is in a good place

Just like the housing market, the private equity market fluctuates considerably over time. You'll want to keep an eye on these fluctuations and start the process only when you're sure the market will allow you the best chance of getting a good price for your startup.

These four signs will help you discern when you're ready to start looking for a private equity firm to take your burgeoning business off your hands so you can move on to your next great business idea. For more information, contact RLS Associates or a similar organization.


17 August 2016

Will You be Ready for Retirement?

My name is Alison, and I recently found out that I should have been saving for retirement since I first began working. I have now discovered what it takes to have a successful retirement plan, and I felt secure in my ability to care for myself once I am done working. I may even be able to retire early! I'd like to help you get your retirement plans in order and make the most out of the time you will have when you are no longer working. Let me help you understand what you need in a retirement plan and how you can get started.