Selling a business and achieving liquidity is likely to be the single most important financial event for a private business owner. Timing is perhaps the most critical factor to securing maximum value in the sale of a business.

Typically there are three different types of timing associated in the sale of a business: seller timing, buyer timing, and market timing. Examples of each are provided below:

Key Factors that Drive Timing

Seller Factors:
Lack of capital
Growth beyond comfort level
Boredom / burnout
Other interests

Market Factors:
Favorable economic climate
Low interest rates
Advantageous tax treatment
Government regulatory changes

Buyer Factors:
Meeting growth expectations
Slow organic growth
Increasing competitive pressures
Diminishing market share
Globalization of industry

While numerous factors may drive a seller to seek immediate liquidity in their business, unfortunately, the needs of the buyer and the conditions of the market ultimately dictate timing and value

Determinants of market timing