When is the Best Time to Sell a Business?
This is a question that I get asked all of the time. And while some CPAs will tell you that anytime is a great time to sell a business—the truth is that there are specific periods in the year that are better to sell in than others. So when are they, and what makes them prime for selling your dealership? Let’s take a look.
Consider your marketing
When you’re preparing to sell a business, it’s essential to think about who you’re marketing it to. Most likely, it’s someone who is highly motivated, has room in their budget, and is ready to make moves that will propel them forward. So, with these factors in mind, when does it seem like the best time to sell?
The beginning of the year through spring is the ideal time to sell your business.
The logic here makes sense. Eager buyers are starting out the year ready for their next big move. They will be highly motivated to close on a purchase, and therefore less price-sensitive. With a fresh budget at their disposal, funds are also likely more available during this time. On the flip side, sellers will have their financial records and reports in order, making it easier for potential buyers to review business performance.
Closing the sale
Instead of just considering the time of year to sell, it’s also important to evaluate the best times to close the deal. The best time to complete and finalize the deal is when the buyer will have sales immediately after closing. In the Recreational Vehicle dealership world, this is spring and summer. You’ll want to avoid any speed bumps or scheduling an arbitrary date, like waiting for an accounting cycle to end. Doing this will only create unnecessary disruptions that could ultimately affect the final sale of your business.
Ready to sell in 2023
Perhaps you already knew that the beginning of the year was the best time to sell your dealership—if so, then you’re on the right track! Ultimately, the decision to sell should be based on your own goals and circumstances and the ability to find the right buyer at the right time and price. But if you’ve prepared and are ready to sell, you’ll want to make sure that you’re working with a team of trusted CPAs that can guide you through this often complex process.
Ready to take the next steps? Reach out to schedule a time to talk with me, and let’s get your business sold in Q1!