Hajra Naz
Key Takeaways
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Selling your business isn’t about timing the economy—it’s about knowing when your company, industry, and operations are ready.
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Focus on profitability, efficiency, and realistic valuation to maximize ROI, regardless of the market cycle.
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Market headlines create noise. Smart exits are built on fundamentals, not hype.
Why Timing the Market Rarely Works
Over the past decade, many owners have asked, “When was the best time to sell a business?”
Believe it or not, it wasn’t before the pandemic. It was just after.
In June 2024, the U.S. Department of the Treasury reported that American business investment had exceeded expectations, outperforming pre-pandemic projections by $430 billion. The report noted:
“The outlook for future business investment growth is encouraging. Firms are observing persistently high returns to their capital, and founders are starting new businesses at historic rates.”
Even during 2020–2022, many industries saw explosive growth. Manufacturing “surged back” in Q3 2020 with record gains in output and hours worked, according to the U.S. Bureau of Labor Statistics.
The lesson? You don’t sell based on headlines. You sell based on your business health, your sector’s trajectory, and your momentum.
Read More: 3 Key Reasons to Secure Funding for Your Growing Business (And How to Use It Wisely)
Valuations Are More Stable Than You Think
Company valuations have stayed remarkably consistent for 25–30 years, even during downturns like the 2008–2009 recession.
Owners often make a critical mistake: waiting for the “perfect” economic moment. That wait can destroy value.
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A software client of ours delayed selling as their industry heated up. That patience gave them a 10-year growth runway and a chance to exit at a much higher valuation.
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On the other hand, a client in the print-and-postage industry ignored declining demand. By the time they were ready, their window had closed—along with their leverage.
The truth: There’s no universal right time. There’s only the right time for your business.
How Buyers View Your Business: A Quick Look at Metrics
| Factor Buyers Prioritize | What They Want to See | Why It Matters |
|---|---|---|
| Profitability | Consistent EBITDA growth, not just top-line revenue | Proves long-term viability |
| Operational Efficiency | Lean operations, documented systems, and low founder reliance | Reduces buyer risk |
| Market Position & Industry | Competitive edge, sector stability, scalability | Ensures future upside |
| Growth Potential | Expanding TAM (Total Addressable Market), tech adoption | Justifies premium valuation |
| Valuation Realism | Numbers supported by performance, not hype | Builds buyer trust |
Three Steps to Build Value in Uncertain Markets
1. Prioritize Profitability Over Revenue
Buyers don’t buy hype. They buy earnings power.
One of our clients in marketing brought in $5M in revenue but lost $200K annually. After shifting focus, revenue dropped to $3M, but profits jumped to $220K. That leaner, more profitable company attracted stronger buyers—and a better valuation.
2. Build Operational Efficiency
A company that runs smoothly without its founder is worth more. Focus on:
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Streamlining headcount while maintaining output
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Documented, replicable systems and SOPs
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A leadership team capable of running the business independently
This creates a “business-in-a-box” that buyers want to acquire.
Read More: Staying Strong in Business When Everything Feels Hard
3. Stay Realistic About Valuation
Remember Quibi? Funded with $1.75B, dead in six months. Valuation isn’t about raising hype—it’s about performance, predictability, and fundamentals.
Signs It Might Be Time to Sell
Wondering if the moment is right? Here are two consistent signals we see:
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Growth feels harder. You’re putting in more effort for less return.
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You’re mentally ready. You catch yourself thinking, “I’ve got a couple of good years left in me.”
These thoughts are often the earliest—and clearest—indicators it’s time to plan your exit.
Why Strategy > Headlines
Selling a business is rarely a quick flip. It often takes 12–36 months to prepare financials, align operations, and attract the right buyers.
Public markets fluctuate daily. But private M&A deals run on longer cycles and are less sensitive to daily volatility.
The buyers are different (private equity firms, family offices, and strategic buyers). The financing is different. The valuation multiples are different.
Don’t rush. Don’t panic. Don’t sell just because the news cycle feels volatile.
Final Thoughts: Focus on What You Can Control
The best time to sell isn’t dictated by Wall Street or CNN. It’s dictated by your company’s readiness, your industry’s outlook, and your personal goals.
Ignore the noise. Focus on profitability, efficiency, and execution. That’s where the best exits — and the biggest ROI — are built.
Stay strategic. Stay grounded. And when it’s time, sell smart.
Read More: Which Is Preferable In Business: Talent or Work Ethic?
FAQs
1. How long does it usually take to sell a business?
Most private business sales take 12–24 months, depending on deal size, industry, and buyer pool.
2. What industries are seeing the strongest valuations in 2025?
Sectors like AI, SaaS, healthcare, renewable energy, and logistics are commanding premium multiples.
3. Should I sell during a recession?
Yes — if your business is profitable and resilient. Many private equity buyers actively acquire during downturns.
4. How do I know if my valuation is realistic?
Compare EBITDA multiples in your industry, assess growth potential, and avoid basing valuation on hype or projections.
5. What’s the #1 mistake business owners make when selling?
Waiting too long. Owners often ignore market signals or personal readiness, missing their optimal exit window.
