Determining the right time to sell your business can be challenging. For owners of financially healthy companies, the decision often involves a degree of educated guesswork. You must weigh the known, your company’s past and present performance, against the unknown, its future potential, to decide which side of the equation carries more weight.

Entrepreneur once published an article titled “Why You Should Quit While You’re Ahead,” which remains just as relevant today. Inspired by that perspective, we’ll explore several scenarios in which selling your business might make sense, even when it’s thriving.

Scenario #1: You’ll be selling anyway eventually, but you’re not sure when.

Many Baby Boomers are approaching retirement and know they will eventually sell their businesses, but determining the right time to sell can be difficult. Market conditions, buyer confidence, and lending environments all influence timing, yet these factors can shift quickly and unpredictably. While current conditions may appear favorable, no one can guarantee that today’s strength will continue in the months or years ahead. For owners who are simply waiting for the “perfect time,” it’s worth considering that selling while the market remains stable, and while your business performance is strong, often leads to better outcomes than trying to time the market, which rarely works.

Scenario #2: Your business is making good money.

You might think that holding on to a money-making business is not only a good idea, but the only one. But selling a business that’s growing with strong margins is infinitely easier and more profitable than selling one that’s stalling or losing money. We are in a period presently where there are fewer sellers than buyers. That may not be the case forever.

Take a careful look at the market, your competition, and your own circumstances. Now, try to assess whether any of them might falter, thus affecting your ability to maintain your company’s performance and profitability. If the answer is yes, make plans to sell sooner rather than later.

Scenario #3: Consider the time it takes to sell and transition.

Many owners do not grasp the time it takes to prepare, sell, and transition a business. According to the Exit Planning Institute, the average time to sell alone is 7-10 months, and that does not include a transition, which can often last 6 months to 2 years. Bear in mind that 7-10 months is the average, meaning that many processes take longer.

So, ask yourself: when do I want to be done for good? If you are interested in fully retiring or moving south next year, consider that it might not happen.

In summary, selling and transitioning carefully often takes longer than most business owners think it will.

Conclusion

Does any of the above sound familiar to you?

Questions about how attractive your business would be in the current market? Calder Capital would be happy to set up a meeting with you to discuss what steps you need to prepare for a sale now or in the future.

It’s never too early to get all of the facts about this critical aspect of your life and financial future. Even if you do not decide to sell now, knowing the value of your business, as well as its strengths and weaknesses, can help you in guiding it to even greater success.

About Calder Capital

Founded in 2013, Calder Capital is a cross-industry mergers and acquisitions advisory firm with offices across the United States. Calder provides valuation, sell-side, and buy-side services. We are nationally recognized for excellence in advising $1-100M enterprise value transactions in manufacturing, construction, distribution, and business services. Calder serves business owners, entrepreneurs, family offices, financial buyers, and investors. Learn more at www.CalderGR.com.