When is the best time to sell your company? This is what I tell my customers (and it’s not when you think) | Entrepreneur

In the last 10 years, when do you think was the best time to sell a company?

Believe it or not, it was just after the pandemic. In June 2024, the US Department of Schatkist reported Those American business investments had exceeded expectations and performed better than the pre-Pandemic projections with $ 430 billion. “The outlook for future growth of business investments are encouraging,” said the report. “Companies observe continuously high returns to their capital and founders are starting new companies at historical rates.”

In the industry, 2020-2022 even surpassed 2019 in many statistics. Production, for example, “rose back” in Q3 2020 with record profits in output and hours worked, According to the US Bureau or Labor Statistics.

The real lesson: it’s not about timing the market

You do not sell on the basis of newspaper heads. You sell based on your company, your industry and your momentum.

The ratings of the company have remained remarkably consistent over the past 25 to 30 years – even during recessions such as 2008-2009. Waiting for the “perfect” economic moment to close is a common mistake that often leads to missed opportunities.

One of our software customers was almost ready to sell last year. But their industry started to warm up so quickly, we advised them to keep them. They now have a growth track of 10 years and a chance to leave with a considerably higher appreciation. On the other hand, we had a customer in the print-and-post business who was waiting for too long. They ignored clear signs of decreasing question. By the time they were ready to leave, their window was closed – and also their leverage.

The point: there is no universal “right time” to sell. There is only the right time for it your business, in your industry.

Related: When should you prepare your company to sell? The best time to start now is now – this is why.

Three steps to build value in uncertain markets

Economic volatility ensures that many owners dedicate their exit plan second. Do I have to move faster? Do I have to accept the first good offer?

In most cases the answer is no. Instead, refine your original plan with three important adjustments:

1. Prioritize profitability over income

Buyers do not pay for top growth-they pay for what drops on the bottom line.

One of our marketing customers was $ 5 million in income, but lost $ 200,000 annually. After they had focused on profitability, they trimmed the turnover in $ 3 million, but they used a gain of $ 220,000. That slimmer, more profitable company was ultimately worth more – and attracted better buyers.

2. Build operational efficiency

A well -run company is more attractive, resilient and easier to sell. Strive for:

• Fewer people deliver the same output
• Documented, replicable systems
• A team that can lead the company without you

Buyers want to see a machine that works – and still has room to grow.

3. Stay realistic about appreciation

Do you still remember Quibi? The mobile streaming platform LWrote with $ 1.75 billion in financing – and folded in six months. Or something Shark tank Episode in which founders are laughed at the room for unrealistic projections.

Appreciation is not about hype. It is about performance, predictability and market reality.

So then is The right time to sell?

Here are two signs that we see consistently:

• Growth takes more effort for less return.
• You start thinking: “I have a few good years in me.”

Those thoughts are signals. Don’t ignore them. They are often the earliest signs that it’s time to plan your exit.

The market is moving, but your strategy should not

Selling a company takes time – sometimes years – especially if you want to maximize the value. Public markets fluctuate daily. But private business sales work on a different timeline and follow different rules.

The buyers are different. The financing is different. The valuation statistics are different.

So don’t hurry. No panic. And don’t let the headlines distract you from your long -term strategy.

Related: sell your company when you expect it the least – how you can scale and sell your company in the right way

Last thought: focus on what You Can control

The best time to sell is not about market timing – it’s about business readiness.

Ignore the sound. Focus on profitability, operational health and what actually happens in your sector. That is where real value lives – and where the best outputs are made.

Stay strategic. Stay grounded. And your company does not sell briefly.