When it’s time to plan an exit strategy there are many options. To keep or sell a business is often an emotional choice, and it’s never easy. Here are five logistical things to consider when the time comes:
Stock market and interest rates: Even if your company is private, the stock market will play a role in the price you can expect from its sale. Public and private company valuations are correlated. Interest rates also play a factor in the cost of capital. As interest rates go up, valuation typically goes down. Interest rates are now historically low, which is one of the reasons why your business has a historically high valuation. In the next two years, if interest rates or your revenues increase, you may expect your business to be worth the same as it is now.