Timing the Market When Selling Your Business

Trying to time the market when selling a business is almost impossible — but recognizing the right window of opportunity isn’t.

When Might It Be a Good Time to Sell?

If your company has experienced 3 to 5 years of financial growth, now may be the time to explore your options. Why?

Because one off year can reset the value clock.

Company 1: Sold at the Right Time

This business had three strong years of growth and made the decision to sell. They received maximum value.

The following year, the pandemic hit, causing major setbacks in the industry.But the previous owners had already exited — unaffected by the downturn.

If they had waited, they'd be looking at five years of rebuilding just to get back to where they were.

Company 2: Waited Too Long

Another company had six consecutive years of success.The owner believed the growth would continue another two years. His plan?Scoop the profit, then sell and retire.

But the trend didn’t continue.

Due to the cyclical nature of his industry, his next best chance to sell high might come seven years later — if the company hits all its future targets.

Every missed target is a setback in valuation.

So... Is Now the Right Time?

If your company is in a growth cycle, it may be the perfect opportunity to sell for maximum value.

Even if you're not ready to commit, understanding what companies like yours are selling for is the first step.

Reach out to CRI M&A Advisors