Exit Strategy » Assess Readiness for Market

You may be ready to sell your company, but the market may not be.

For example, in the recent downturn of 2014-2016 in the oil and gas market, if you survived this downturn, this may not be the best time to sell from a valuation standpoint. The concept of buy low and sell high is very much alive and well in M&A. You want to sell your business preferably in a strong market, and you want to buy a business in a weak market that has upside. Specific sector or industry conditions, global or national economic conditions can also affect the value of a transactions.

If you are contemplating selling your business, then take a good hard look at your market today and your best guess at what the market will be doing in 2-3 years.

If you are in a weak market that is living an improving trend, then you may want to wait a year or two before you actually sell.

If your market is stable and looks like it will be stable in the future, then there is no sense in waiting if you are ready now.

Market conditions can and will affect your Exit Strategy.


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