What Time of the Year is the Best Time to Sell a Business?

In this article, we will provide you with guidelines on the best time of year to list your business for sale.

Inika Pieters

05 October 2022

Summary

What Time of the Year is the Best Time to Sell a Business?

Are you considering selling your business? Have you wondered if there is a formula that dictates when the best time of year would be to market your business for sale? Is there a season that would provide you with a serious buyer?

 

In this article, we will provide you with guidelines on the best time of year to list your business for sale.

The Best Time of Year to Market Your Business for Sale

December is always a bad month in South Africa to make sales; unless you're a retail store. However, when it comes to businesses, it is advisable to wait until the new year to market your business for sale. From about November buyers are more focused on December holidays, family time, and rejuvenating for the new year to come. There is also the question of the entire process taking much longer than it should if you were to find a buyer and start the process over December as most professionals involved in the sale will also be closing down for the holiday season.

Phases of Selling According to Months

As there are different phases of selling a business, it is a great idea to plan out in which months you should be performing certain actions to ensure you have the best chance of selling your business quickly and at the desired price.

The Preparation Phase

If you are ready to sell your business, it is a great time to get your affairs in order from October to January. During this time you can ensure that your financials are ready, gather reports on business performance, receive a business valuation, and ensure everything is ready to go! It is advisable to consult a business broker to ensure you have everything you need before entering the marketing phase.

The Marketing Phase

As you enter the new year it is a great time to start marketing your business. From January to April you can make use of an online business brokering platform and ensure your business is the first to appear when buyers start searching!

The Buyer Selection Phase

From April to July you should have already received a few offers. During this time you can go through the process of evaluating potential buyers and investigate whether they have the necessary funds to buy your business.

The Closing Phase

By July you should have found a trustworthy buyer and can now close on the deal. This process will take a few months as banks, lawyers and the government need to get involved to securely transfer the money and transfer the business into the new owner's name. This entire process will often span from July to October

 

Even though this is a good metric to go by when selling your business, it is not foolproof. You could successfully sell your business at any time of the year if you have a fantastic marketing team to support you and the correct buyer is on the hunt.

 

Business for Sale is a platform that prides itself on providing the best assistance and exposure possible to business sellers. We make the selling process easy by bringing qualified buyers to you!  Contact the Business for Sale team to find out more about how we can help you successfully sell your business!