Deciding to sell your business is a significant challenge involving financial, emotional, and strategic considerations. Knowing the right time to sell entails evaluating both internal and external factors. The following considerations will provide you with insight into the right time to sell:

1. Financial Health
What is the financial health of your business? Consistent year-over-year revenue growth, a strong balance sheet, and above industry average profit margins are attractive to buyers, indicative of strong financial health, and helpful in commanding a higher sale price. 

2. Growth Stage
What is the growth stage of your business? While selling your business at its peak has a good chance of maximizing your sale price, selling anytime during a consistent growth period may incentivize strategic buyers to pay a premium for potential future growth.

3. Market Conditions
What are the current market conditions for your industry? Robust industry, strong economic conditions, and high buyer demand for your business type may result in competitive offers and likely a higher sale price.

4. Personal Readiness
Are you ready to sell? Most business owners focus on internal factors, such as the financials of their business, and external factors, such as market conditions, when they contemplate selling. However, personal circumstances, such as retirement, health issues, family circumstances, burnout, or the desire to pursue a new opportunity, should be considered. Sometimes, these reasons alone may make it the right time to sell.

5. Long-Term Goals and Succession Plan
Does the sale of your business align with your long-term goals? There are many reasons to sell your business, and retiring is often at the top. The strategic alignment of your personal and business goals is important to evaluate. Assess how your business’s most probable sale price aligns with your financial and retirement goals. If these goals are not aligned, working with an exit planning advisor can assist in achieving these goals. In addition, ensure you have a succession plan in place for a smooth transition for the new ownership, your employees, and your customers, as well as for the continued success of your business.

6. Advisory Team
Do you have a team of advisors? It is important to work with a business broker, accountant/CPA, financial planner, exit planning advisor (if needed), and lawyer to develop a comprehensive strategy for the sale of your business. This team will help you determine your business’s value and most probable sale price, understand the tax implications of your sale, develop post-sale investment strategies, improve your business to achieve your long-term goals, and ensure legal compliance.

Conclusion