5 Signs it’s the Right Time to Sell Your Company
In so many areas of life, success happens when you take the right action at the right time. That’s certainly no less true when it comes to selling a business.
A question we’re asked more than any other by people wondering how to sell a company is, “When is the best time to sell my business?”
Timing is everything and here are five signs it might be the right time to sell your company…
Business is going well
One of the best times to sell a business is when things are looking rosy. Don’t make the mistake of waiting until your business performance declines before you start thinking about selling it. A healthy turnover, decent profits and a skilled, productive workforce are all highly desirable selling points. Being able to market your business for sale and highlight positive aspects like these will create a very attractive buyer proposition and allow you to command a higher price. So, quit while you’re ahead.
The market is thriving
Do you know what’s happening in your corner of the market right now? Keep a careful eye on market performance within your industry. Consider getting expert advice on current and forecasted trends. Smart business owners who want optimised value when selling their company benefit enormously from monitoring market conditions on a regular basis, so they can exit when the most profitable door opens. Got a business with international appeal? Adopt a global view and stay abreast of exchange rate changes that may be favourable to overseas buyers.
Your passion is fading
If you go to sleep at night with the creeping feeling you could be injecting more energy and focus into your business and wake up with a nagging bout of demotivation, perhaps it’s time to prepare your business for sale. As the years pass, we all change and it’s only natural to crave new challenges in life. Maybe you’ve already ticked off all your goals, so the impetus to keep growing your business simply isn’t there anymore. If you keep reluctantly forging ahead when your heart and mind aren’t truly in it, this can have a negative long-term effect on the performance of your business and reduce its eventual sale value.
You’re in a position of choice, not need
Arguably one of the best times to sell a company is when you don’t necessarily need to yet. An alarming number of business owners wait until they must sell their company before they prepare their exit. Unfortunately, this means they aren’t in the strongest negotiating position – because they can’t walk away easily if they don’t like the offer they get. Don’t back yourself into a corner. Stay in a healthy exit-ready position to give yourself options in case a suitable buyer does appear on the scene with the right price and terms.
Paying too much tax?
Some business owners make the decision to sell for tax reasons. One owner recently said to us, “If I could sell my business for the right sum today and subsequently only pay 10% tax with Entrepreneurs Relief then why would I not want to sell?” If this is the case for you, you may wish to consider the financial benefit of preparing your business for sale. However, we do advise you to be honest about the broader reasons for selling your business. Don’t do it just for tax reasons if you or your business aren’t ready yet.
These are only a handful of the signs it could be the right time to sell your business. Before you embark on the sale process, make sure you spend some time with an advisor from a corporate finance company such as Entrepreneurs Hub to assess the saleability of your business and the potential value you could achieve.
Contact us in confidence to find out more about how to sell a company for maximum value. Call 0845 067 8678 or email info@entrepreneurshub.co.uk
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FAQs – Selling your company
How do I sell my business?
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
How much can I sell my business for?
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell my business?
The timeline varies depending on the complexity of the deal and how ready the business is for sale. On average, the process takes around twelve months – sometimes less, sometimes more.
While preparing your business for sale, Entrepreneurs Hub conducts in-depth research to identify potential acquirers. You’ll have the opportunity to review and approve this list before we make any approaches. Once the business is fully prepared – often the most time-consuming step, we begin marketing it. Typically, you’ll start seeing initial interest within a few months, with follow-up meetings happening shortly after.
As these meetings progress – coordinated and facilitated by Entrepreneurs Hub, you’ll begin receiving initial offers. At this stage, we’ll help you assess the strategic fit between your business and potential buyers. When you decide to move forward with an offer, an exclusivity period begins, during which the acquirer conducts Due Diligence (DD).
The DD phase typically lasts two to three months, depending on the complexity of your business. Once complete, the sale is finalised, and you’ve successfully sold your company.
How do I sell my business quickly?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
When is the best time to sell?
Selling your business is a major milestone, and the start of an exciting new chapter, whether that means new ventures or a well-earned retirement.
In our experience, the best time to sell is when you don’t need to – when your business is performing well – not necessarily tied to the calendar. That said, timing can still play a role.
Timing the Market
Strong economic conditions, sector growth, and buyer confidence boost valuations. Don’t wait for a “perfect” market – a well-prepared, well-performing business sells in any climate.
Plan Ahead (12–18 Months)
The best outcomes come from early planning: clean financials, solid forecasting and growth potential.
Spring & Autumn Are Active Periods
The M&A market is typically busier in spring and autumn while summer and winter tend to be slower due to holidays and year-end distractions. However, the unpredictability of deals and negotiations makes this hard to target. We do deals all throughout the year – the key is to work with someone who can keep driving the deal forward whenever it happens.
Financial Year- End
Selling your business well is a long process and aiming for your financial year-end milestone is a virtually impossible task. But it is worth bearing your financial year in mind as buyers will want to review the most up-to-date accounts available.
The best time to sell is when your business is ready, and you are too. With the right preparation and positioning the right timing follows naturally.
Can I sell my business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…