When’s the right time to sell my business?

Here's how you can prepare to sell your business

8 triggers that say it’s time to sell your business

Market peak/Multiples in your sector

Timing is everything in business sales. When your sector is experiencing high valuation multiples – often driven by investor demand, consolidation trends, or macroeconomic factors – it could be the ideal moment to exit. Selling at a market peak allows you to maximise your return, especially if buyers are paying premiums for strategic acquisitions. Monitoring sector benchmarks and comparable transactions is crucial to identifying this window.

When you’re ready! Fatigue and succession really matter

Running a business is demanding, and burnout can creep in unnoticed. If you’re feeling fatigued or simply ready for a new chapter, it’s worth considering a sale. Similarly, if there’s no clear successor – whether family or internal leadership – it may be time to pass the baton. A well-timed exit can ensure continuity and protect the legacy you’ve built.

Customer concentration risk

Relying heavily on a small number of customers can be risky. If one major client accounts for a significant portion of revenue, it may deter future buyers or investors. Addressing this risk early – either by diversifying or selling before dependency becomes a liability – can help preserve value and attract more interest.

Working-capital or capex cliff

If your business is approaching a point where significant investment is needed – whether in working capital, infrastructure, or technology – it’s worth evaluating whether you’re the right person to lead that next phase. Selling before hitting a capital cliff can transfer the burden to a buyer better equipped to scale, while you realise value without overextending.

Regulatory/tax changes (e.g. CGT/Business Asset Disposal Relief BADR)

Changes in tax policy or regulation can dramatically affect the net proceeds from a sale. For example, shifts in Capital Gains Tax or Business Asset Disposal Relief could reduce the amount you take home. Staying ahead of legislative changes and acting before they take effect can be a smart financial move. Always consult with tax advisors to understand the implications.

Incoming competitors/tech disruption

If your market is facing disruption – whether from new entrants, changing consumer behaviour, or emerging technologies – it may be wise to sell before margins erode. Buyers often look for businesses with strong positioning, but timing is key. Selling while your business is still resilient can help you avoid a reactive exit later.

Management team ready for MBO

If your leadership team is capable and motivated, a Management Buyout (MBO) could be a seamless exit strategy. It allows continuity for the business and rewards those who’ve helped build it. Explore our MBO services to see how we support owners and teams through this transition, from structuring the deal to securing funding.

Desire to de-risk wealth (PE Minority/EOT Option)

For many owners, selling isn’t about walking away – it’s about de-risking. Options like selling a minority stake to private equity or transitioning to an Employee Ownership Trust (EOT) can unlock value while keeping you involved. These routes offer flexibility and tax efficiency. Learn more about EOTs and PE options, and if an EOT explainer is missing, we can help create one tailored to your audience.

Timing vs valuation 

When it comes to selling your business, timing and valuation are closely linked – but not the same. A well-timed sale can significantly enhance your valuation, especially when market conditions and buyer appetite align. But what actually drives that valuation?

Buyers often use earnings multiples (like EBITDA or revenue multiples) to quickly estimate value. These are influenced by sector trends, growth potential, and risk. For example, a tech business with recurring revenue might sell for 8–10x EBITDA, while a project-based firm might fetch less. Discounted Cash Flow (DCF) analysis digs deeper. It values your business based on projected future cash flows, adjusted for risk. The more predictable and de-risked those cash flows are, the higher the valuation. This method rewards businesses with strong fundamentals and long-term visibility.

What else can drive business price?

Recurring Revenue: Predictable income streams (e.g., subscriptions, contracts) reduce risk and boost multiples.

Intellectual Property (IP): Proprietary tech, patents, or brand equity can create defensible value.

De-risked Future Cash Flows: A stable customer base, low churn, and strong margins make your business more attractive.

Scalability: Buyers pay more for businesses that can grow without proportionate cost increases.

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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