I was perusing Norm Brodsky’s blog on the Inc. Magazine online edition, and read an article close to my partner Michael’s and my hearts. It was actually written in August of 2007, about when we began telling many business owners who were  emotionally ready to leave their businesses, but still waiting for the “best time”, to “Sell!”  Funny, that’s the title of Norm’ s article. 

What he said then is even more salient now.  It was back in 2007 that Michael was telling anyone who would listen that multiples were the highest they’d be for years to come, maybe ever.  He also predicted the impending implosion of the real estate bubble and the tumbling of the financial house of cards built by hedge fund managers bent on reaping obscene rewards from financial shell games played within the loopholes of financial regulation.

Let me quote the opening of Norm’s 2007 article: “You can tell something’s happening.  It’s in the air, and it’s in the news.  The credit markets are in turmoil [if he only could have seen what was to come], interest rates are fluctuating wildly, and going forward, the private equity firms aren’t going to pay what they’ve been paying for companies.  The upshot is this: if you’ve got a tempting offer to sell your business, take it – if it’s not too late.  We’re nearing a market top, and we’re nearing the end of an era…it hasn’t ended yet, and deals are going to get done, but if you miss the boat on selling at the top, you will have to wait for the next cycle.  And that could take two years.  Or it could take ten.” 

Two years later all those whom we tried to advise, and who decided to wait, have learned how right Norm was.  Those business owners who yearned for a new kind of life after their businesses, and yet decided to hang on a few more years to reap a higher return on investment, are still working in their businesses, with few options better than to keep on keeping on.   For many entrepreneurs, that’s a daunting prospect, given the hardships of the past several months.

There is light at the end of this tunnel.  It may not be as bright as it could have been two, three years ago.  But entrepreneurs understand karmic lessons better than most – even if they won’t use the K word.  The point being, we experience consequences of every action – or lack thereof. 

If you own a business that may be attractive to a strategic buyer, there are still good deals to be made.  Yes, it’s a buyers’ market, but there are fair buyers looking for good investments. 

I’ve learned to take serious heed of Michael’s “predictions.”  Like Norm, his advice is based on extensive research and knowledge of the marketplace, as well as over twenty-five years as a mergers and acquisitions specialist. Looking ahead, Michael, like Norm, doesn’t see the next cycle on an upswing for quite some time.  

For those business owners who waited too long after the best opportunity in decades to sell a business, now is the next best time to make that move if you are psychologically ready to retire or to make a life transition into another kind of work.  On the flip side, it is also a dynamic time to grow a business for those of you with a passion for your work.  One thing is for sure – if you’re on the fence, and honestly don’t have the energy or desire to stick it out for a very long haul, this is not the time to continue on the karmic wheel of inertia.  Either stay in your business with passion and conviction – or start the process, at least mentally, of preparing to exit your business as gracefully as possible.  And do it soon.

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