Is there an ideal time for company owners to buy or sell their business?
Of course, there can be myriad motivating factors centrally underlying a buy-or-sell decision for a company in Ohio or elsewhere in any given case, and they don’t always rest solely upon profit considerations.
Logically, though, they usually do, and when such is the case, says one academic and health care business expert, at least one well-developed planning model does reasonably offer some guidance on the optimal timing for purchasing or selling an entity.
The entity focused upon in researcher Teresa Gonzalo’s analysis is a health care company, whether that is a hospital/clinic, device maker, drug manufacturer or other business.
Gonzalo says that data emerging from a particular model — namely, a so-called Transfer Cycle analysis — supports a general reality marked by back-and-forth cycle periods of curtailed funding and investment activity versus expanded access to capital and growing optimism among developers and entrepreneurs poised for breakout opportunities.
Gonzalos says that the model is presently implying that — at least for the health care industry — the time to sell a business or to begin positioning it for transfer is now. And, she adds, there will likely be strong prospects for a growing buyer’s market emerging within a couple years.
The model might indeed be worthy of a close look for any business principal focused on a sale or acquisition, with, of course a necessary caveat added that stresses the key importance of a business entity doing solid research and due diligence in all market environments.
A proven business law firm can centrally help with that, pointing out applicable strategies and helping company principals identify and mitigate business risks as they study new opportunities.