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Business Law

• Tips from Experienced Entrepreneurs on Owning a Business
• Why Buying a Small Business in a Recession Has Advantages
• Becoming a Successful Entrepreneur: What Makes an Entrepreneur Successful?
• State Resources Available for New York Small Businesses
• State Resources Available for New York Small Businesses

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Business Law

• Factors that Drive a Business Sale
• Timing a Business Sale
• Avoiding Partnership Disputes: Issues that Existing Business Owners Must Consider
• Preparing to Sell Your Business
• Purchasing a Business: What is Good Will and Why Should You Care?

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Timing a Business Sale

When is the right time to sell your business? The answer to this question depends on numerous factors and the type of business you operate. If you are an entrepreneur looking at selling your business, you need to evaluate whether or not you should sell now or wait until a later date.

One of the first things you need to consider as a business owner is if you are ready to give up your company and release control. You also need to determine if you will make enough money to justify the business sale. As a business owner, you are the only one who can make these determinations.

If you feel that you are prepared to sell your company, you need to take a look at the economic conditions for your specific industry. Typically, an ideal environment for selling is when interest rates are low. When interest rates are low, the buyer generally will not require as high of a return on investment (ROI). Prospective buyers compare ROI with the interest that could be earned if they invested elsewhere. Capital gains rate is also an important market condition to evaluate. A reasonable capital gains rate will make it more appealing for prospective buyers.

You should take into account the buyer’s timing when determining the right time to sell. For example, buyers may be more apt to purchase a business if they want to grow their share in the market, expand in a new geographical area or increase their competitive advantage.

Making the decision to sell a business and then timing the sale can be difficult. You can benefit greatly from talking with an experienced New York business lawyer. Contact Decker, Decker, Dito & Internicola, LLP today at (718) 979-4300 or (800) 976-4904. We have extensive experience in business law and will utilize our expertise to make a measurable difference to your business transaction.