Many business owners feel the urge to time the sale of their business. They consider holding off because they want to wait for interest rates to come back down, or for their industry to reach a certain peak, or for the market to “heat up.” Some want to push through a large backlog of work first. Others are waiting for the perfect strategic buyer to appear.
This mindset sounds smart on the surface, as it’s modeled after the idea of timing the stock market. But if you listen to any seasoned investor or financial planner, they’ll all tell you the same thing: trying to time the market is a losing game. And the same principle holds true when it comes to selling your business.
The Unpredictability of Business Sales
The truth is, it is nearly impossible to time the sale of a business based on outside factors. Selling a company is not like selling stock. It is not fast, clean, or predictable. It is a long, complicated process that includes dozens of moving parts. Even in the most ideal conditions, it can take six to twelve months to complete. And along the way, anything can happen.
You could be close to a deal and your top employee quits. A new administration could roll out regulations that affect your industry. A sudden shift in AI could change your market position. Or maybe the buyer’s dog dies and he walks away from the deal.
Even if you manage to thread the needle and time everything just right, the financial benefit of doing so is usually smaller than you think. You might improve your valuation by a few percentage points, but rarely enough to turn a bad number into a good one. It is unlikely to be the difference between a deal that is worth doing and one that is not.
That said, there is one situation where timing can matter. If you are coming off 12 to 24 months of strong financial performance, that is the closest thing to a perfect window you are going to get. A recent run of profitability shows buyers consistency, stability, and momentum. It gives them confidence. And it gives you leverage. If you are ready to sell and you are in that window, that is a great time to consider going to market.
The Better Approach: Personal Readiness
The most important factor in the decision to sell is not the market. It is not the economy, or interest rates, or even industry trends. The most important factor is your personal readiness. If you base your decision primarily on outside forces, every shift in the landscape will cause you to change direction. You will keep pushing your plans back. Your team will be left in the dark. Your family will get tired of the uncertainty. You become reactive instead of decisive.
Yes, there are windows of opportunity that can make a sale more favorable. We acknowledge those. But they are secondary. If those windows line up with your personal goals, that is a bonus. A nice tailwind. But they should never be the reason for selling. The desire to sell must come first. The rest is timing, and timing only matters when it serves your goal, not when it replaces it.
That is why we always start with a valuation. The money has to make sense. If the valuation gives you a number that can fund the next chapter of your life, then it is worth exploring. But even then, your personal motivation has to be the driver. Without that, the process will grind you down. You need more than a number to carry you through it.
So When Is the Right Time?
Here is my best advice.
When you are ready to do something else, and the valuation comes back at a number that allows you to do it, that is the right time. If the number is not big enough, then it is not time. And that is perfectly fine. We can work with that. We can help you grow the valuation until it is.
But I have seen too many owners jump into the process because of something they read in an article or heard from someone in their industry. When the decision is not personal, they often run out of steam before the deal is done. Selling a business is hard work. It takes emotional commitment. Without it, you will likely walk away halfway through.
Conclusion
Selling your business should never be based on market chatter or temporary conditions. It should be based on personal conviction, a clear vision for the next season of your life, and a financial result that gets you there. When those three things line up, you will not need to guess whether it is the right time. You will know. And when that time comes, we will be ready to help you navigate every step.
