Listen to what Dallas Business Broker, Bill Whitehurst, says about when you may want to think about selling your Dallas business.
Bill Whitehurst: Many business owners asked, “How do I know when the best time is to sell the business?” One time is certainly when the business owner is starting to lose passion for running their business. Many business owners that get burned out are not burned out because they don’t love the industry they’re in, but they become burned out because they don’t want to be business owners anymore and handle the mundane aspects of running the business.
When a business owner starts feeling like they’re losing their passion for the business, they’re not as interested, they’re getting to a point where they don’t want to start handling problems. When they first start feeling that way, that’s a good time for the business owner to start thinking about selling the company, before that becomes too late and they’re really, truly burned out.
Another good time to sell a business is when the cash flow has been increasing each year. Say the last three years and year to date, because those are your years that lenders look at for their ratio, and deciding if they want to lend to a new buyer for the business. Whenever business has been increasing for three years, year to date, the business owner feels like he’s getting a little tired of running the business, this is an optimum setting and an optimum time in which to sell a company.