The best time to sell is always when you don’t have to. Selling when you don’t have to, provides you the luxury of picking the right buyer and offer; and gives you an advantage during the negotiating process. We recommend that business owners have a clear and realistic horizon for the sale of their business.  Planning for the sale should start 3-5 years before the actual target date to ensure that the business is ready for sale and that any eventual sale yield a premium price and terms.

These situation are always difficult, as the seller is motivated by the wrong reasons to sell and their negotiating position is often compromised in favour of the buyer.  If you are considering selling at some time in the future, take the necessary steps to prevent a forced sale.  There could be insurance that covers some of the above listed risks, or comprehensive partnership or marital agreements.  Developing a comprehensive risk management system in the organisation would identify and necessitate the development of mitigation strategies to address these risks.