As we’ve mentioned before, and is commonly asked of us, the best time to sell your business is while it’s growing and on the way up, or while its at a peak – obvious, but most owners wait too long.  Consider selling now, if not soon.  Understanding where the economy is can inform where your business might be in the near future.

        Via Yahoo Finance, Goldman Sachs sees a lot of strength in the US economy in the next year, but some taper and cool growth following (see chart).  While great businesses outperform the economy at large, all businesses track with the economic conditions in which they exist.  A slow down is coming.  Selling your business on the way up or at a peak allows you to sell at the best valuation possible.  You’re selling existing cashflows and future opportunity. 

        What happens in a slow market – are there buyers?  In a slow market, a great business isn’t at a peak, but it still outperforms and presents great opportunity.  

        Buyers seek the opportunity to succeed no matter the environment, and in spite of a slowdown.  A great business today represents an opportunity that presses straight through any slowing in the economy in good condition to jump on future potentials to move to the next, even greater level.

        Great business buyers understand high quality assets are valuable, especially in a downturn, and great businesses are that asset as they prove that they can capitalize on the greater trend at play no matter the conditions – US economic progress.  Prove you have that asset, selling while things are going well in your business.  Don’t try and tell a story of what used to be.

        A company that succeeds in a downturn is one that is primed to prosper after, and buyers know it.  Reiterating something he commonly says, Warren Buffet recently wrote in his latest shareholder letter:

        When you next fly over Knoxville or Omaha, tip your hat to the Claytons, Haslams and Blumkins as well as to the army of successful entrepreneurs who populate every part of our country.  These builders needed America’s framework for prosperity – a unique experiment when it was crafted in 1789 – to achieve their potential.  In turn, America needed citizens like Jim C., Jim H., Mrs. B and Louie to accomplish the miracles our founding fathers sought.

        Today, many people forge similar miracles throughout the world, creating a spread of prosperity that benefits all of humanity.  In its brief 232 years of existence, however, there has been no incubator for unleashing human potential like America.  Despite some severe interruptions, our country’s economic progress has been breathtaking.

        Beyond that, we retain our constitutional aspiration of becoming “a more perfect union.” Progress on that front has been slow, uneven and often discouraging. We have, however, moved forward and will continue to do so.

        Our unwavering conclusion: Never bet against America.

        If you’re considering it, don’t wait too long to sell.  You’ve got a great asset and there’s a buyer out there who wants to carry forth your legacy and expand your business success into the future.

“In its brief 232 years of existence, however, there has been no incubator for unleashing human potential like America.  Despite some severe interruptions, our country’s economic progress has been breathtaking.”  – WB