When is the right time to exit a business?

Here are a few signals which help you know when it’s the right time to exit a business:

• Trust your instincts: You know your business better than anyone. If your gut feeling is that you’re ready for a change, it’s time to explore your options.
• A change in priorities: If you’re reaching retirement age and / or your health, family and lifestyle requirements have changed, freeing up liquidity would help you to live comfortably.
• Loss of economic independence: To help propel your business forward, it may be time to bring in an external investor, which means you lose economic freedom.
• Ready for a change: If you’ve accomplished your goal of building your business and are no longer challenged, it may be time for a new project.
• Tempted by new ventures: If you’re thinking about new ideas and projects, it could be time to exit your business.
• Skillset limitations: You may find that as your business grows, you become less of an asset. Perhaps your business requires external skills or capital to reach its potential.
• The market may be moving against you: If you recognise that there is a threat on the horizon that could make your business irrelevant of marginal, it may be time to think of an exit plan.
• An unmissable opportunity: If the timing is right when multiple buyers are interested and the highest price can be commanded, it’s probably an ideal time to cash out.

Choosing the right exit strategy

If the signs are there and you’re ready to move to the next chapter of your life, it’s time to plan ahead. Our team of advisors can help you work out the best exit strategy, by matching your business and personal goals.

Please feel free to give me a call if you need help in deciding the right way forward.