5 Signs It’s Time to Sell Your Business
One of the most common questions I am asked as a corporate finance advisor is, “What is an indicator that it is the best time to sell my business?”. In business, as in comedy… timing is everything. Many a good story features the phrase, “in the right place, at the right time,” somewhere in the narrative.
In a previous blog we looked at five of the most obvious signs that now is the right time to sell your business… you can read that blog here. But for this blog, I wanted to look at five more indicators and what they mean for you and your exit strategy.
Had a knock at the door?
Of course, selling a business also relies on someone being prepared to buy your business. So, the question of timing is not one-sided either. If you have had an approach from an interested acquirer or even multiple acquirers, that could be a good indication that your business is in a good position to sell. Even if you are not quite ready it might be worth exploring a business valuation to determine if making the most of the opportunity presented is, in fact, the right thing to do.
A change in family circumstances
Many of our clients come to us prompted by a change in family circumstances. This could range from a need or desire to be more present; grandchildren are a common example; to a simple desire to reclaim time and realise the asset you have built. Whatever your personal circumstances, family can be a powerful influencer in the timing of a decision to sell your business.
Friends and colleagues are retiring
One of the greatest influences on our desires is those around us. It’s a very natural feeling to see something that brings our friends joy and to want that for ourselves. So, if you are seeing those around you enjoying the benefits of retirement, or even having sold a business themselves, it is quite natural to begin to think about selling your own business. As has been said many times, the right time to sell is when you are ready.
Opportunities are being missed
This can be a very difficult one to face up to as a business owner. But the truth is, as your business grows you may find your own skills, experience or other factors limit the company’s ability to take advantage of some opportunities. This is explored further in our recent blog: 5 strategic reasons your business is worth more in someone else’s hands. If this resonates with you then it may be a good time to explore your options.
Advice from your Wealth Manager
One of the best things you can do, if you haven’t already, is get yourself a good wealth manager. This is not the same as an accountant, this is someone who can sit down with you and look at your personal situation and advise you on how to make your money work for you. As part of the discussions they have with you, an exit strategy from your business is bound to come up. They will be able to help you determine when it is right for you to consider selling your business.
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 to walk you through how to value a business for sale.
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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…