When Should You Sell Your Business?

Good question.

Generally speaking, a good time to sell would be when your business is on the up, revenues are high and are continuing to climb, margins and customer growth are strong and the future looks rosy. Offers will generally be strongest during this period.

However, a good sale decision weighs more than just timing and business performance. It factors in you.

For example, let’s say business is strong and buyer interest is bubbling over. Do you sell even if you love your job? What’s the ROI on being happy at work, again?

Or let’s say business is not what it once was. Maybe not the best time to sell, but are you willing to wait for sunnier days (whenever that might be) even if your passions now lie elsewhere?

Maybe you aren’t even remotely looking to sell when you receive a huge unsolicited offer. Let’s be real, are you actually prepared to turn down the massive bag of money?

Okay, decline the bag of cash and keep the business. After all, what the hell else are you going to do with your time? (You laugh, but retirement is truly not for everyone.)

Some might say to sell while you’re still young and healthy, but have you considered that maybe it’s your work that’s keeping you young and healthy?

Perhaps business is good, but you’re a little anxious about the future. Well, there’s something to be said about knowing when to fold ‘em.

The scenarios are endless, but you get the gist, the decision to sell depends.

It depends on business performance and market timing. It depends on future growth vs future risk. It depends on offer size and deal structure.

But it also depends on you, what you want, what you value, and what you want the next chapter to look like. Your personal goals matter. Don’t underestimate them.

And don’t underestimate life either. Life is unpredictable, and when it comes to selling, you never know when it might decide to make that decision for you. Whether it’s health issues or something else, life loves to throw wrenches.

Be mindful of this and your responsibility to others. Be cautious of hubris and a false sense of permanence. Understand that you can take some chips off the table when times are good without it being a betrayal of your business or personal goals. Sometimes it’s simply responsible ownership.

So, while there is no perfect time to sell, now is the perfect time to start considering the possibilities. Familiarize yourself with the options available to you. Be honest about what your business is and where it’s headed. Consider your personal and professional goals. Talk with those close to you.

You can talk with us, too. Advisors can help you understand what those possibilities actually look like in practice. We work with business owners to evaluate their goals, assess their options, and determine the best path forward.

With the right preparation, you won’t have to wait for the perfect moment, you’ll be ready to recognize the right one.