Entrepreneurs are optimistic by nature. We get it. It’s in our DNA too. Making lemons into lemonade is SOP. Next year we hope it will always be better. But will it?
Clearly there is an array of operational issues that can improve a business. But weigh this against the macro landscape of economic uncertainty, interest rate volatility and political turmoil. The Capital Markets remain strong today but will that be the case if or when your company turns around?
Moving one level down you may face country risk for your sourcing and/or sales. Supply chain issues can upend your just in time inventory levels. Tariffs may play havoc with your pricing model. You may be on the short end of customer concentration issues and labor is finally playing catch up with their wage demands.
Finally, the micro issues of running a business continue with internal operation or accounting surprises at every turn. Customers may reduce SKUs, consumers may turn fickle in their spending habits and possibly you or one of your key managers suddenly face a health issue. If you are ready to sell your business, look at the greater landscape. Compare the dynamics that are the key drivers. Look a bit further and recognize how little control you really have on the future. One question to ask yourself is why play “Russian Roulette” with your most valuable asset and push things off? A follow up question might be can you afford to wait?
We have seen this picture play out before with our prospects and clients betting that next year will be better. Sometimes they are right but often things happen. The numbers go sideways or worse. The business needs more time to dig itself out from a hole. One thing is for sure. As the business owner you are one year older and a successful sale of the business seems more elusive than ever.
When considering selling your business, think long and hard on the decision. When you are ready, we urge you to stay the course. The Sellside Group is happy to review your options with you and help plan your future goals and objectives.
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