Experience indicates that the sale of a strong company will reap benefits in excess of the costs of the development of same. Timing Prevailing conditions with respect to interest rates, economic growth, industry specific developments and so on must be assessed in light of the timing of the sale. The demand for specific companies tends to be cyclical. For an owner with a short-term horizon this can lead to problems. Often weak industry conditions will motivate the vendor to exit the business at the worst possible time.
Timing is essential to realizing the best price for a given business.
An owner must view a sale as a part of the natural evolution of the business. As such the owner must be in a position to sell when industry economics indicate that the market will pay appropriately for the business. One of the objectives of the vendor in any business sale is the maximization of his selling price. In order to achieve this the logical buyers should be identified and ranked in order of their likely interest in the acquisition in relation to their ability to actually purchase the business. Having compiled this listing the vendor should attempt to identify and value the potential benefits which might accrue to each purchaser.