When Is the Right Time to Sell My Business?|Orlando FL

With two plus decades of experience in selling businesses, we know that it’s better to sell your construction-related business when you choose to, rather than wait until you have to.

It really comes down to planning ahead so you are ready to make the change when the timing is right for you.

Life can be unpredictable. Unexpected events (for you, your partners or key employees) can impact the course of your business.

Divorce, illness or death in the family can force you to sell before you are ready.

Frequently, we meet business owners who are burned out and want to retire without an exit plan in place.

Be Prepared So You Can Sell Your Business at the Right Time

Determine the Value of Your Business BEFORE You Start Planning the Sale

Get the information you need to understand the market conditions - what it would sell for now

Then, you can plan ahead to get the most value from the sale.

At We Sell Construction Businesses, we provide a Broker’s Opinion of Value for your business today and help you develop the exit plan to get the price and terms you want going forward

When you have the right planning in place, you can choose when to pull the trigger

Some Tips for a Quicker/Smoother Sale

That Important First Step: Reach Out to an Experienced Business Broker

How and where do you start? When you start to think about selling, the best first step is to contact a certified business broker/intermediary.

Don’t Wait for the “Perfect” Time to Sell

The Best Time to Sell Your Business Is the Time that’s Right for You

Whether you’re retiring, reimagining your future, or just ready to move on, the first step is to find out what your business is worth now.

Make sure that your books are clean and match your tax returns

Start moving personal, non-essential business expenses off the company’s accounts.

Do your best to normalize salaries where you can, especially if you have a family working in the business.

Try to look at it from a buyer prospect’s point of view. Expenses that take away from the company’s bottom line will lower the value of the business for your buyers

Avoid burnout.

You could be tempted to take the first reasonable (or unreasonable) offer, possibly leaving hundreds of thousands of dollars on the table.

You could be tempted to take the first reasonable (or unreasonable) offer, possibly leaving hundreds of thousands of dollars on the table.

Burned-out sellers typically take their foot off the gas after an offer is in place, which can hurt the deal. If it takes a few months to complete due diligence, the lender and buyer will probably want updated financials.

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Joe Shemansky     11/07/2023

When Is The Right Time To Sell My Business?

With two plus decades of experience in selling businesses, we know that it’s better to sell your construction-related business when you choose to, rather than wait until you have to. It really comes down to planning ahead so you are ready to make the change when the timing is right for you. 

Life can be unpredictable. Unexpected events (for you, your partners or key employees) can impact the course of your business. Divorce, illness or death in the family can force you to sell before you are ready. Frequently, we meet business owners who are burned out and want to retire without an exit plan in place. Below is a real-life situation that a construction business owner got himself into.

Be Prepared So You Can Sell Your Business at the Right Time

Recently, the We Sell Construction Businesses Team was approached by the owner of a paving company. Larry (not his real name) had missed that ideal timing. He was completely burned out and wanted to retire immediately. He had started shutting down his business and just wanted to sell off the equipment and be “done.” He was willing to walk away from a business that he spent decades of his life building, and miss out on nearly two million dollars for his retirement. 

What might have happened differently for Larry if we had this conversation a year or two earlier? We could have put the steps in place to prepare him and start to package the business in a timely fashion when it was making more money. Selling a construction-related business can often take six to nine months to sell to get the maximum amount of money. Larry would have had the time to exit out of the business, instead of creating his own fire sale. He would have been retiring with a lot of extra cash, rather than just walking away with what he's already earned up to this point. We’re working with Larry now. If he can be patient for a few more months, we can help him get a better value for his business and more retirement income for him and his wife.

Determine the Value of Your Business BEFORE You Start Planning the Sale

Get the information you need to understand the market conditions - what it would sell for now. Then, you can plan ahead to get the most value from the sale. At We Sell Construction Businesses, we provide a Broker’s Opinion of Value for your business today and help you develop the exit plan to get the price and terms you want going forward. Every business owner will choose to sell or activate a succession plan at some point in time. When you have the right planning in place, you can choose when to pull the trigger. 

 Some Tips for a Quicker/Smoother Sale

We always recommend to business owners that they operate their company as if they planned to sell it tomorrow. While this is easier said than done, these tips will help you get there. 

  • Make sure that your books are clean and match your tax returns. 
  • Start moving personal, non-essential business expenses off the company’s accounts. 
  • Do your best to normalize salaries where you can, especially if you have a family working in the business. 
  • Try to look at it from a buyer prospect’s point of view. Expenses that take away from the company’s bottom line will lower the value of the business for your buyers.
  • Avoid burnout. 
    • You could be tempted to take the first reasonable (or unreasonable) offer, possibly leaving hundreds of thousands of dollars on the table.
    • Burned-out sellers typically take their foot off the gas after an offer is in place, which can hurt the deal. If it takes a few months to complete due diligence, the lender and buyer will probably want updated financials. If your sales or profitability have dropped, your buyer might attempt to renegotiate terms.

That Important First Step: Reach Out to an Experienced Business Broker

How and where do you start? When you start to think about selling, the best first step is to contact a certified business broker/intermediary. Even if you have a reasonably long timeline for selling, an established broker can give you an objective opinion of value based on the current market and your industry. They can also recommend changes to increase your company’s worth and alert you to concerns that might be red flags to a buyer. You can use this time wisely to make improvements or resolve issues before you put your business on the market.

Don’t Wait for the “Perfect” Time to Sell

Are you playing the timing game, waiting for the “right” part of your business cycle or for unfavorable economic conditions to change before you put your company on the market? Unfortunately, almost no one can predict the market, and waiting can backfire with heavy financial repercussions. Think about the owners who were thinking about selling a year or two ago. Now, they find interest rates considerably higher. This makes it more challenging to find qualified buyers, and for interested buyers to offer as much as they would have then.

The Best Time to Sell Your Business Is the Time that’s Right for You

No matter what’s happening in the overall economy or your industry, there’s always a market for a profitable, well-run company. You can expect a deal to take 60 to 90 days to close once you have a qualified buyer and the deal is under contract. At We Sell Construction Businesses, we often start working with a seller as early as six months before putting the company on the market. That gives us plenty of time to complete our process - to perform a detailed evaluation, do research, and prepare the marketing strategy to advertise the business to the right pool of buyers.

Whether you’re retiring, reimagining your future, or just ready to move on, the first step is to find out what your business is worth now. Contact We Sell Construction Businesses today to get started.

See the types of construction-related businesses we sell.


This blog was originally written by Joe Shemansky, MCBI, M&AMI, CM&AP, CBI. Joe is the Principal Broker-Owner of We Sell Construction Businesses (www.wesell construction businesses.com), which is headquartered in Clermont, Florida. We Sell Construction Businesses provides business brokerage and M&A transaction services to main street and lower middle market construction business owners, looking to sell their businesses. He can be contacted at 352-404-9191 or joe@wesellconstructionbusinesses.com.

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