Lilac Street Capital LLC

The average business owner has 70-80% of their total net worth tied up in their company. Here's a tip for knowing when it's a good time to sell your business:

As the old adage goes "Concentration builds wealth, diversification preserves it". But at what point should a business owner consider taking some risk "off the table" by selling all (or a portion) of their largest asset?

Believe it or not, there's an actual financial milestone that once hit might be a good time to consider your options … It's called "The Freedom Point".

That's the point at which the net proceeds of selling your business would secure you enough money to live comfortably on for the rest of your life. Your lifestyle and family obligations determine your Freedom Point, so it's different for everybody.

Knowing what you want, what you need, and how much your business is worth on the market is essential for figuring out whether it's time to look at your options .

A few other contributing factors to consider when timing an exit from your business:

* Industry trends
* Personal priorities
* Health
* Business cycle stage

Remember, selling your business right requires time, preparation, and knowledge. Planning your exit strategy sooner rather than later puts you in control. If you don't make the decisions of when or how to sell your business, other people and things (like life, the market, the economy, etc) will make them for you.

Know your company's worth. Every week I see small business owners leave millions of dollars on the table when selling their businesses. Don’t get taken advantage of by the big guys. Hire an M&A expert that will fight for you and get more buyers, more bids, and a higher price for your business.

Start planning your exit strategy today!

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Lilac Street Capital LLC is a proud veteran owned & operated business.