Buying a business for sale in Australia, especially your first one can be daunting. Timing is everything when buying a business, you can either time it well and buy a good business for a good price or time it wrong and pay an overinflated price for an underperforming business.
So when is the right time to buy?
Generally, you should plan well in advance for the sale of any business. With so many economic upturns and downturns, it is impossible to predict the future.
There are times when a sale may be forced on the business.
- A partner passes away or decides to leave the business.
- A large company may move into the sector and look to pick off the smaller businesses
- Your financial position may change 4.
So when is the right time to sell?
The idea for the seller is to get the best possible price for the business. Although it is preferable for a business to be sold when your sector is thriving, it is still possible to attract a good price in an economic downturn. If your business is viewed as being profitable when the sector is performing poorly, this alone may be the factor that would allow you to get a favourable price for the business.
The business may have been set up with a view of passing it down to your children; however, they may decide they do not want it. Don’t wait until the business goes sour before selling it, sell it whilst your business is running smoothly.
