BreakThru Realty

Should I Sell My Business Now or Prepare It for Another Year?

Sell now if the business is at or near its best and the reasons to sell are yours: health, retirement, a partner, a new venture. Prepare for a year only if there are specific, fixable things a buyer would pay more for and you have the energy to fix them. A year spent hoping for a better market is not preparation.

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Find Out What My Business Is Worth · (786) 914-1017

What a Year Can Change

Some things move the multiple and can be fixed in twelve months: clean, reconciled financials that match the tax returns; a lease renewed or extended so a buyer and an SBA lender see enough term; a manager or second-in-command who makes the business less dependent on you; written processes, contracts and renewals that make revenue look recurring; a reduction in the share of sales from one customer; and a tidy, well-maintained premises. Each of these is a reason a buyer pays more, and each shows up in due diligence whether or not you worked on it.

What a Year Cannot Change

The industry, the location, the size of the business and the direction the market is moving are not yours to fix in a year. If sales have been falling, a year of preparation usually produces a smaller business with a weaker trend, which buyers price harder than a business that was sold while it was still growing. Owners who are tired tend to let the business slip while they wait, and the business a buyer sees twelve months later is worth less, not more.

What Waiting Costs

A year of your working life, a year of market risk you cannot control, and a year in which the lease runs down, a key employee may leave or a competitor may open. Set those against the gain you expect from the fixes. If the fixes would lift the price by a meaningful margin and you know exactly which ones they are, the year can pay. If the honest list is short, the market is giving you its price now.

A Framework for the Decision

Ask for a confidential valuation of the business as it is today, and a second figure for the business as it would be with the specific fixes done. If the gap is large and the fixes are within your control, prepare for a year with a written plan and a date to list. If the gap is small, or the fixes depend on things outside your control, list now while the numbers are strong. Either way, start the valuation now: it tells you which route you are on, and it costs nothing.

Find Out What My Business Is Worth

Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.

Questions Owners Ask

How much is my business worth?
Most owner-operated businesses in Florida sell for a multiple of seller's discretionary earnings: net profit plus the owner's salary, benefits and one-time or personal expenses run through the business. Where the multiple falls depends on the industry, the lease, the staff, the trend in the numbers and how much the business depends on you. A confidential valuation gives you the range for your business and the reasons behind it.
Will my employees, customers or landlord find out?
Not from us. The business is marketed without its name or address, buyers sign a non-disclosure agreement and prove their funds before they learn who you are, and showings happen after hours or are presented as something else. The landlord is approached only once there is an accepted offer, because the lease has to be assigned.
How long does it take to sell a business?
Six to nine months from listing to closing is common for a well-prepared small business, faster when the price is right and the records are clean, longer for businesses that need a licensed buyer or a franchisor's approval. The escrow period after an accepted offer is usually sixty to ninety days.

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