The best time for selling company?
Is there such a thing as the best time for selling a company at all? Of course, you could consider, the best time as always the one, if you don’t “need” sell!
However, we sell companies in crisis situations and under considerable time pressure. The norm it shouldn’t be, however.
That cyclical fluctuations and also the economic climate in an industry exert influence on prices is hawked in quite often, but is not given to our experience. This corresponds also with studies at the University of St. Gallen. Economic influences have no significant, demonstrable effect on enterprise value multiples after the result of this work. Company internal influence factors realize a much higher impact on company value multiples and thus to the corporate value.
This corresponds with our experience. There are some parameters that can affect value enhancements for your company, and can have influence on the timing of the sale of the company, these include among others:
- the developments in your market and neighbouring markets
- the earnings situation
- the organization of the company and of the succession
- the attractiveness of your company in relation to: technologies, Know-How, unique selling propositions, competitive advantages, quality and sustainable customer relations, qualification of management, topicality of your fixed assets, sustainability of the success factors, staff, the quality of your balance, etc.
- how well is your company in the search profile of an investor.
The best timing is determined by the implementation of all value-forming factors and / or the proven capability of implementation.
In our experience, a company that has attractive values and future prospects, especially in difficult economic times is very good to sell. This means attractive values and future prospects should be given from the perspective of the investor.
That means, all value-forming factors should be presented corresponding to the goals and requirements of the targeted investment community. Basis, is a resilient corporate strategy and planning, and an sustained valuation.
We help you to align your company on a sale to realize the decisive value.