Detroit, MI asked in Mergers & Acquisitions for Michigan

Q: When is the best time to sell a business?

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1 Lawyer Answer
Jonathan R. Roth
Jonathan R. Roth
  • Salem, MA
  • Licensed in Michigan

A: It is completely dependent on the type of business you are selling. If you are selling a seasonal business like one dependent on beach or summer vacation traffic, then before the season starts. Ultimately a well educated buyer is going to evaluate the business on its last 3-5 years of operations and will want to understand its cash flow on a monthly and quarterly basis. As to a time of year, unlike the purchase of homes, there is no real prime time to sell a business although actually entering into a purchase and sale agreement usually does not happen in December or January, even if the closing does. It is dependent upon the nature of the business and the goals of each party,

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