Exit planning
Determining the Right Time to Sell
The company, market and personal signals that suggest it is time to sell, and why a good time beats waiting for a perfect one.
By Michael D. Rubin, CEO & Founder · Updated September 2026 · 740 words
The right time to sell is usually when three things line up: the company is growing, buyers are active in your industry and you are personally ready to leave; and what you are looking for is a good time, not a perfect one. Waiting for every signal to peak often means selling after the peak. Talking to an advisor well before you decide gives you time to prepare, so you can act when the window opens.
Timing is partly in your control and partly not. The company's performance and your own readiness you can shape; the market you can only watch.
Signals in the company, the market and yourself
No single signal decides the question. Look at all of them together, and be honest about the ones pointing the other way.
| Where to look | Signs it may be a good time | Signs to wait or prepare |
|---|---|---|
| Your company | Several years of rising revenue and earnings | A recent decline you cannot yet explain or reverse |
| Your customers | A broad base with recurring work | Heavy reliance on one or two accounts |
| Your industry | Similar companies being acquired; buyers calling you | Buyers pulling back from your sector |
| Financing | Lenders actively funding acquisitions like yours | Credit tightening for buyers of companies your size |
| You | Clear plans for life after the sale | No idea what you would do next |
Growth is the strongest argument for your price
Buyers pay for the future, and the most convincing evidence of the future is a record of growth. A company that has grown steadily for several years can support a higher multiple of earnings, because the buyer can see a trend it expects to continue. Selling during growth also means selling before the risks that come with a bigger company, such as a larger payroll, more debt or dependence on a few big contracts, show up in the numbers.
The reverse is also true. An owner who waits until growth has stalled usually sells for less, because the buyer is now pricing a flat or falling trend and will want proof that it can be turned around. Either way, buyers will ask for monthly results, not just annual ones, to check that the trend is real.
Watch what is happening around you
Keep track of acquisitions in your industry, whether buyers are contacting you and what similar companies are reported to have sold for. Several deals among companies like yours suggest demand. So do private equity groups building platforms in your sector, since they tend to buy more than one company over a few years.
General conditions matter too: how readily lenders fund acquisitions, the health of the economy and your industry, and changes in tax rules that affect sellers. None of these is in your control, and none should drive the decision alone, but they can make a good time better. Be wary of reading too much into one headline sale; the details behind a reported price are rarely public, and a single deal may say more about that buyer than about the market. Your CPA should advise on tax timing specifically.
Preparation decides whether you can act
The window for a good sale can open unexpectedly: a strong year, a buyer's call, a larger competitor entering your market. Owners who are prepared can move; owners who are not must spend months fixing records while the window closes. That is the main reason to talk to an advisor long before you intend to sell. Preparation also protects you from being rushed. An owner forced to sell by illness, a partner dispute or burnout has little time to market the company and little leverage in negotiation. Those events cannot be predicted, but their damage can be limited by having the company ready in advance.
Our answer on what your business is worth if you sell within the next year covers what can still change in a short window, and our guide on the right time to sell looks at the personal side in more depth.
How MDR & Associates helps with timing
A free, confidential discovery meeting and opinion of value, based on three years of financials, tells you what the company could bring now, which is the first fact you need to decide whether now is right. If it is not, our pre-exit consulting helps prepare the company over the 12 to 24 months before a sale. Either way, you can start with the free valuation snapshot.
Where this fitsExit planning for Texas business owners →
Questions owners ask next
Should I sell when an unsolicited buyer calls?
An unsolicited offer is a useful sign that buyers value your company, but not necessarily a reason to sell to that buyer. One offer tells you little about what the market would pay. If the call makes you consider selling, get an independent opinion of value and consider inviting other buyers before you respond.
Is it too late to sell if my business has started to decline?
Not necessarily. Buyers can still be interested, especially if the cause is clear and fixable or the company has customers and assets they value. Expect a lower multiple than during growth, and consider whether a year or two of work could reverse the trend first. An advisor can tell you which path is likely to pay more.