Columnist

There is no perfect time when selling a business

Every year, I speak to business owners who tell me they are going to wait.

I often get asked the question, ‘When is the right time to sell my business?’ 

My answer is almost always ‘now’. 

The reason is because a business is a very volatile asset class, and you never know what is around the corner.

Owners often wait for interest rates to settle, the economy to improve, the next election, the next Budget or the next piece of positive news.

The problem is that there is always something to wait for.

Over the past decade, we have lived through Brexit, COVID-19, soaring inflation, rising borrowing costs and ongoing geopolitical conflict.

Each of these events has made people feel they should put major decisions on hold.

But business does not work like that.

If I had waited for perfect conditions before making investments, I would have missed some of the best opportunities I have ever had. 

The same principle applies to selling a business.

One of the biggest misconceptions I encounter is that timing is driven purely by the market. 

Valuations move and investor confidence fluctuates, but those factors are only part of the equation. 

A strong business will always attract interest because buyers are investing in its future, not simply reacting to today’s headlines.

What concerns me more is the amount of risk many founders carry without fully appreciating it.

For most entrepreneurs, their business represents a significant share of their personal wealth. 

That is an incredible achievement, but it also creates a substantial concentration of risk.

Unlike shares or property, a privately owned business is not a passive asset. 

It depends on people, customers, markets, legislation, technology and countless other factors that can change quickly. 

None of us knows what is around the corner.

That is why I believe the best time to explore your options is when your business is performing well, not when circumstances force your hand.

The businesses that achieve the strongest outcomes are not always those sold into the strongest markets. 

They are the ones that are properly prepared, with robust financial reporting, recurring revenues where possible and systems that make the business transferable.

The next consideration is strategic alignment. 

I have always believed the best acquisitions create value for everyone involved.

The right partnership should accelerate growth, open new markets and strengthen the business long after the deal completes.

Too often, business owners focus solely on valuation. Price matters, but so does what comes next.

Can the right partner help you grow faster, bring expertise you lack or create opportunities that would not exist if you stayed independent?

In some cases, could they acquire the whole business, preventing administration after a period of financial difficulty and protecting hundreds of jobs?

Selling all or part of a business allows founders to realise value today while reducing personal risk.

Ultimately, timing is not about predicting the next economic cycle. 

It is about knowing you have built something that someone else can successfully own and grow, with or without you at the helm.

Markets will always rise and fall, wars will begin and end and economies will strengthen and weaken. 

Those things are outside our control.

What is within our control is preparation, choosing the right partner and building a business that can thrive beyond its founder.

Every business owner has the opportunity to act from a position of strength.

In my experience, that is usually when the best deals are made.

Emre Yilmaz is a UK-based private investor and mergers and acquisitions professional

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