If you’re watching the national (and global) news, fretting over the markets, and feeling uncertain, you’re not alone. And if you’ve been thinking about selling your company, all the uncertainty and bad news can make it easy to second-guess your timing. Should you sell now before things get worse? Should you hang on for a few years and hope the cost of money goes down and tariffs don’t make the cost of doing business skyrocket? When will the value of your company be at its peak?
The honest answer is that no one knows what the future will bring. But the right time to sell your business is not based on the economy, financial markets, or almost any factors that are outside your control.
The right time to sell your business is when it’s the right time for you.
You may be selling for any number of personal reasons. You may be ready for retirement. You might be facing serious health or family issues. You might be feeling burnt out. Whatever the reason, the decision should be based on your needs and goals. Waiting too long could make any of these issues worse.
People buy companies in every kind of economy; they’re buying for reasons of their own as well. They’re betting on the future, ready to take on the risk and invest the resources and time that you may not have or have the energy for. When you find the right buyer at a price that’s right for you, you should be willing to make a deal.
As for getting the best selling price, John Warrilow, author of the book Built to Sell, says it’s a fool’s errand to try to time the market so you can sell at peak value. The cost of money could go up next year. The economy or market for your product or service might change. The right buyer could move on to another opportunity.
If you’re planning to sell within the next few years, the best thing you can do is focus on your company’s fundamentals. Make sure your books are in order, that you have the right staff and management structure in place, and have developed systems and processes that make the business run smoothly without your daily involvement. Those features are what attract quality buyers.
I recently helped an owner sell a business after 30 years of ownership. The company’s revenues were strong, and he was fairly young. Both he and the company still had gas in the tank. But he knew he wanted to leave the business while he was still able to travel and pursue his hobbies. It was the right time for him, and he didn’t hesitate when he got a good offer.
Is this the right time to sell your business? Maybe. Knowing what your company is worth in the current market and what you need to achieve your financial goals will determine if it’s the right time for you.
If you’d like to understand the value of your company, click here for a complimentary and confidential opinion of value.