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\n Opinions expressed by Entrepreneur contributors are their own. <\/p>\n
Over the past 10 years, when do you think was the best time to sell a business?<\/p>\n
Believe it or not, it was just after the pandemic. In June 2024, the U.S. Department of the Treasury reported<\/a> that American business investment had exceeded expectations, outperforming pre-pandemic projections by $430 billion. “The outlook for future business investment growth is encouraging,” the report stated. “Firms are observing persistently high returns to their capital, and founders are starting new businesses at historic rates.”<\/p>\n Across industries, 2020\u20132022 outperformed even 2019 in many metrics. Manufacturing, for example, “surged back” in Q3 2020 with record gains in output and hours worked, according to the U.S. Bureau of Labor Statistics<\/a>.<\/p>\n You don’t sell based on headlines. You sell based on your business, your industry, and your momentum.<\/p>\n Company valuations have stayed remarkably consistent over the past 25 to 30 years \u2014 even during recessions like 2008\u20132009. Waiting for the “perfect” economic moment to exit is a common mistake that often leads to missed opportunities.<\/p>\n One of our software clients was nearly ready to sell last year. But their industry began heating up so fast, we advised them to hold off. They now have a 10-year growth runway \u2014 and a chance to exit at a significantly higher valuation. On the other hand, we had a client in the print-and-postage business who waited too long. They ignored clear signs of declining demand. By the time they were ready to exit, their window had closed \u2014 and so had their leverage.<\/p>\n The point: There’s no universal “right time” to sell. There’s only the right time for your<\/i> business, in your<\/i> industry.<\/p>\n Related: When Should You Get Your Business Ready to Sell? The Best Time to Start Is Now \u2014 Here’s Why.<\/a><\/b><\/p>\n Economic volatility causes many owners to second-guess their exit plan. Should I move faster? Should I take the first good offer?<\/p>\n In most cases, the answer is no. Instead, refine your original plan with three key adjustments:<\/p>\n Buyers don’t pay for top-line growth \u2014 they pay for what drops to the bottom line.<\/p>\n One of our marketing clients was bringing in $5 million in revenue but losing $200,000 annually. After focusing on profitability, they trimmed revenue to $3 million but turned a $220,000 profit. That leaner, more profitable business was ultimately worth more \u2014 and attracted better buyers.<\/p>\n A well-run business is more attractive, more resilient, and easier to sell. Aim for:<\/p>\n Buyers want to see a machine that works \u2014 and still has room to grow.<\/p>\n Remember Quibi? The mobile streaming platform launched with $1.75 billion in funding<\/a> \u2014 and folded in six months. Or any Shark Tank<\/i> episode where founders get laughed out of the room for unrealistic projections.<\/p>\n Valuation isn’t about hype. It’s about performance, predictability and market reality.<\/p>\n Here are two signs we see consistently:<\/p>\n Those thoughts are signals. Don’t ignore them. They’re often the earliest signs that it’s time to plan your exit.<\/p>\n Selling a business takes time \u2014 sometimes years \u2014 especially if you want to maximize value. Public markets fluctuate daily. But private business sales operate on a different timeline and follow different rules.<\/p>\n The buyers are different. The financing is different. The valuation metrics are different.<\/p>\n So don’t rush. Don’t panic. And don’t let headlines distract you from your long-term strategy.<\/p>\n Related: Sell Your Company When You Least Expect It \u2014 How to Properly Scale and Sell Your Business<\/a><\/b><\/p>\n The best time to sell isn’t about market timing \u2014 it’s about business readiness.<\/p>\n Ignore the noise. Focus on profitability, operational health, and what’s actually happening in your sector. That’s where real value lives \u2014 and where the best exits are made.<\/p>\n Stay strategic. Stay grounded. And don’t sell your business short.<\/p>\n<\/div>\n Over the past 10 years, when do you think was the best time to sell a business?<\/p>\n Believe it or not, it was just after the pandemic. In June 2024, the U.S. Department of the Treasury reported<\/a> that American business investment had exceeded expectations, outperforming pre-pandemic projections by $430 billion. “The outlook for future business investment growth is encouraging,” the report stated. “Firms are observing persistently high returns to their capital, and founders are starting new businesses at historic rates.”<\/p>\n Across industries, 2020\u20132022 outperformed even 2019 in many metrics. Manufacturing, for example, “surged back” in Q3 2020 with record gains in output and hours worked, according to the U.S. Bureau of Labor Statistics<\/a>.<\/p>\n<\/div>\nThe real lesson: It’s not about timing the market<\/h2>\n
Three steps to build value in uncertain markets<\/h2>\n
1. Prioritize profitability over revenue<\/h3>\n
2. Build operational efficiency<\/h3>\n
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3. Stay realistic about valuation<\/h3>\n
So when is<\/i> the right time to sell?<\/h2>\n
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The market moves, but your strategy shouldn’t<\/h2>\n
Final thought: Focus on what you<\/i> can control<\/h2>\n