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When Is The Best Time To Sell?

Usually the best time to obtain the highest price occurs when sales and earnings are good and trending upward. A solid earnings trend will enable a buyer to pay a higher price and still meet his return-on-investment criteria. A history of good performance also gives the buyer confidence in projected future earnings.

However, market conditions for business sales also significantly affect the saleability of a business. Today’s market is the best we have seen in the last five years due to a large number of serious buyers in the market, readily available bank financing and the recent reduction in capital gain taxes which nets the owner more cash at settlement. Buyer demand is making the ownership of Small Business attractive again. The Federal Government of Australia has elevated the status of small business in Australia by giving the portfolio to a senior Minister, and devoting considerable resources to improve the lot of small business.

It is wise to prepare a business for sale so that optimum price can be obtained.

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