When is the right time to sell my business??

2009 isn't shaping up to be a stellar year for many businesses. What are you to do if you have an interest in selling your company right now? For those of you tempted to hold on to your business until conditions improve, I'll share some timing information for you to consider.

As always, the sale of anything is a factor of your motivation. If you aren't really motivated, you'll place an unusually high price on your item, and if someone makes you a full-price offer, they can have it!

What if the motivation is there, though business conditions aren't ideal to get the highest price possible (like if you sold last year when business was better). I haven't figured out a way to sell your business last year if you still are operating it. Here is some insight into how buyers will likely value your business.

They'll typically want to see the last 3 years of operating results, and, the year-to-date results. If your YTD results haven't been good, waiting until 2010 doesn't do much to help with the market value of your company. In 2010, you'll have a full year of 2009 to show your buyers. If 2009 was not as good as 2008, assuming business picks up in 2010 (dust off your crystal balls, right?), you'll need to have the full year of 2010 completed to get credit for it. Though, buyers want to see a pattern, and one year does not make a pattern. It might help explain away 2009's results, though, 2009 did happen, and that will get averaged in someway with 2008 and 2010. So, now you are 2 years out (the rest of 2009, and all of 2010, and part of 2011), without knowing if 2010 will be better or the same as 2009.

Reality is. You need to get in touch with your motivation. If you still see yourself running your business in 2 years, and if you are ok with the value of your business being the same or even lower than it is today, then holding on and running it might be your best strategy. Though, if you are motivated to sell, and don't want to be running your business in 2 years, now is likely just as good a time to sell as it will be over the next few years.