The Myth Of Timing: 3 Reasons
Day traders, stock analysts, and even business sellers often talk about timing – the perfect moment to complete a sale or purchase for maximum financial advantage. After 30 years of working with buyers and sellers of healthcare companies, I have found that it is rarely the best of strategies and is most often only appreciated in retrospect. Almost as though it was an accident or an artifact of the transaction. Why?
There are several reasons. First, the speed of the market today makes it almost impossible to time or accurately predict what would happen tomorrow, apart from general trends. Second, the marketplace is incredibly dynamic with rapid, disruptive change due to an array of factors, including increasingly affordable technological and scientific innovations. Third, the increasing changes to managed care-style reimbursement in that specific marketplace have created a shifting sand environment that is unfamiliar to many businesses, especially long-term care/Medicaid-funded companies.
I always advise potential sellers to evaluate their personal and professional goals first, and then base their timing on that foundation.