With acquisitions timing can make a big difference. It plays out in two major ways:

1. What kind of multiples might be paid for the acquisition?

2. The availability of financing to finance the acquisition.

Think of it as being similar to the real estate market. There can be times in real estate when things get too pricey. The people who get in near the top may have to take a hit for a couple years and ride it out for a while to get back on the curve.

On the other hand, people who buy at nice timing in the market can get some very nice returns and give themselves an extra measure of safety. Like real estate, some of the cycles in buying companies can be rather long-term. It can be like a ten year cycle.

Work with your financial advisor who’s helping you on the transaction and get a sense on how the timing is in the market. If you think you’re not quite in the market yet and it may be a couple years, it’s good to start making those connections. That could influence you perhaps to jump in a little bit sooner or perhaps wait just a little longer.

For example, you might feel your business could grow 25% over the next 2 years. If during that same time, multiples fall 25%, what you have done is just tread water and holding position when the current is going against you.

On other hand, if the market looks to climb, and multiples rise by 25%, your value could grow by 25% just by maintaining the same results.

That is not to say that growth does not matter. But know the current of the stream you are swimming in. Know if you still want to be in.