When should I realise my investment in a business?
The timing of a sale may be determined by, for example, the funding requirements of the business, an unsolicited approach by a potential purchaser or your wish to retire.If not, you will probably want to sell the business when you can get the best price for it. This can depend on general business conditions: for example, economic growth and the level of interest rates. It also depends on the performance of your individual business. If your business is performing strongly but you anticipate problems - for example, increased competition - it may be a good time to sell. Potential purchasers may take a more optimistic view of prospects and offer more than you feel the business is worth.
If possible, plan in advance and groom the business for sale (see 13).
