Oftentimes, sellers get caught up in hitting the “perfect window.” Maybe you’re thinking about waiting until your backlog looks strong, your earnings have spiked, or the market is hot. While all those factors can impact valuation, the reality is that the best time to sell often isn’t something you can control.
Even with a clear roadmap for sale, it’s important to remember that life happens. Personal motivations, whether health concerns, family considerations, or simply fatigue from running the business, can become factors that accelerate your timeline. Additionally, operational issues like key personnel leaving or the need for significant capital investment can push you toward an unexpected sale.
While timing the market is difficult and can’t be controlled, you can control how well you’re prepared when the time comes:
- Stay Sale-Ready: Keep financials in order through audited results, address operational challenges early, and maintain strong relationships with key customers and partners.
- Monitor Buyer Trends: Understanding who’s actively acquiring in the market and what is being acquired will give you insight into when you might become a target. Strategic buyers are always on the lookout and may move when they spot synergies, even if your business isn’t peaking.
- Be Flexible: Being open to conversations with potential buyers can give you insights into what your business is worth and when a good opportunity might arise – even if you’re not actively selling.
In short, timing the market is extremely difficult and doesn’t always yield life-changing differences in price. Instead, it’s important to focus on building a strong business, stay informed, and be ready to adapt.
Have a great day everyone,
Max McFarland
Associate
