Selling a business is one of the biggest decisions an entrepreneur will ever make. It’s not just about numbers on a spreadsheet – it’s about parting ways with something you’ve built, nurtured, and poured your energy into. The timing of this decision can make the difference between a lucrative exit and a missed opportunity.
As Jamal Khan, CEO of Churchill Mergers, puts it:
“A business sale is rarely about today’s value alone. It’s about recognising the right combination of market conditions, buyer appetite, and your personal readiness. That’s when the real magic happens.”
- Understanding Market Conditions
The first key factor in deciding when to sell is the state of the market in your sector. If your industry is experiencing growth, innovation, or consolidation, it may be the perfect time to attract premium offers.
Jamal Khan advises:
“We see owners hold on too long, hoping for a slightly higher valuation, only to face a market downturn. It’s essential to keep one eye on industry trends and economic indicators.”
Research competitor activity, keep informed about acquisition news, and watch for increased interest from private equity or strategic buyers.
- Your Business Performance and Trajectory
Buyers are drawn to companies that are not just profitable but have a strong growth story. Selling when your business is performing well – and has clear potential for further expansion – can significantly increase the purchase price.
If your sales and margins are strong, systems are streamlined, and your brand is reputable, you’re in a far stronger negotiating position.
“The best time to sell is often when you least feel like selling – when the business is thriving,” says Jamal Khan. “That’s when buyers will compete for the opportunity.”
- Personal Readiness and Goals
Sometimes the right time to sell is less about the market and more about you. Do you want to retire, free up time for family, or pursue a new venture? A business sale can open new doors – financially and personally.
Burnout is also a factor. If running the business is becoming a drain, selling while the company’s performance is still strong can be wise.
- Buyer Demand and Competition
A strong pool of interested buyers increases your leverage and often your final sale price. This can be influenced by broader industry consolidation, new entrants to your market, or high investor interest in your niche.
“When multiple buyers are at the table, you’re in the driver’s seat,” Jamal Khan notes. “That’s where strategic positioning and skilled negotiation truly pay off.”
- Exit Planning
Ideally, you should begin planning your exit 12–36 months in advance. This allows time to optimise financials, address any operational weaknesses, and structure the business for a smooth handover.
Having clear, accurate records and a well-prepared management team will instil confidence in potential buyers.
Final Thoughts
The right time to sell your business is when market conditions, business performance, and your personal circumstances align. By monitoring these factors – and seeking professional guidance – you can maximise your return and secure the legacy of what you’ve built.
As Jamal Khan sums it up:
“Selling a business is about timing, preparation, and clarity of purpose. Get those right, and you’ll not only achieve the best price but also the peace of mind that you exited at the top of your game.”
