4 Factors to Consider When Selling Your Printing Business
You’ve put in years of hard work to build a business that you’re proud of. Maybe even some blood, sweat, and tears. Learn how you can secure your exit strategy at no cost to you.
- A majority of businesses do not sell. A variety of sources will show that 4 out of 5, or 80% to 90% of businesses listed, do not sell.1 It’s important to consider that selling a business is not like selling a home or anything else. Buyers are limited and there are many factors that come into play.
- Finding the right buyer is vital to selling your business. Over the years, we’ve found that selling your business successfully is more about finding the right buyer. This is usually someone who generally lives near your business, has the financial ability to buy it, and has the motivation and work ethic to properly run it.
- The price must be right. When most people think about selling something, the idea or goal is usually to sell it for as much as possible. However, selling a business can be a little different, and the price must be right.
This is because buyers have significantly more information than what they had in the past and they can easily see what businesses are selling for both locally and around the country. Businesses will typically sell based on a multiple of earnings.
According to a recent study of sold businesses from BizBuySell, businesses that are successfully sold are selling within 6% of the asking price. This means that when a business is properly evaluated, buyers and sellers are seeing eye to eye, which allows for the sale to take place.2 - The timeframe matters. Timeframe is also an important factor. While waiting on selling a home isn’t typically a big deal, waiting to sell your business can be. The last thing you want to do is sell your business at the wrong time or when it’s too late. You should also be mindful of customers’ and employees’ needs.
Sources:
- Forbes / Exit Planning Institute: https://www.forbes.com/sites/sageworks/2017/02/05/these-8-stats-show-why-many-business-owners-cant-sell-when-they-want-to/
- BizBuySell: https://www.bizbuysell.com/insight-report