Whens the best time to sell your business?
I started a small online advertising business 12 months ago thats been doing pretty well, we are turning over $15000 a month with 12.5% avg growth per month and profits were just over 65k. I have 2 other shareholders and I own 30% of the company.
Whats the best way for me to make more money from this?
Exit BY selling shares?
Selling the company with my partners and splitting the sale value?
Or going public then exiting later?
Any advice or articles would really help I have never done this before
- IanLv 49 years agoFavorite Answer
The answer is you alone can't do anything without the help and approval of your partners, or the other shareholders, unless your articles of association provided for a possible sell off or buy out policy when you and they got together to form the current business. You say you started it, so that may imply that you are the creative genius behind the company and the others provided the finance to help get you going. If that is the case they probably won't want to buy you out and loose your valuable input at this stage. If however you share the skills equally between you then they may be happy to buy you out. Either way you need to talk to them, and set some targets for the short medium and long terms. You seem to have got off to a great start. Your turnover and growth are fantastic at this stage of the business. Most small businesses do not make a profit at all in the first 12 to 18 months. With your growth rate your turnover will double in less than 8 months to $30K/month, and if your profitability remains on track you should then be making over $130K/yr.
That should keep you motivated and interested for some time, and will make other companies sit up and take notice of your business. This in turn may lead to takeover bids etc. But as I said at the top, you need your partners to go along with your plans, so talk to them!Source(s): ...
- OthnielLv 69 years ago
There are no easy answers about selling a business. You and your partners need to get together and reset your goals. Sounds like you are bored and need some new challenges. It could be one or both partners will want to buy you out but if not I would suggest that all of you work even harder for the next five years and set goals for that time frame. Someone may come along and make you an offer you can't refuse or you will find employees to run the every day operation and you can look for something new and more interesting.
With all of that there are some commercial real estate brokers who specialize in selling businesses. Someone like that could probably advise you.