When is the Optimal Time to Sell My Business?

The optimal time to sell your business is when your company demonstrates stable growth, your industry is developing positively, you are personally ready to sell, and you have invested at least 1-2 years in preparation.

Is my company currently in a good selling phase?

Your company is in a good selling phase if it shows positive key performance indicators. Consider the following factors:

• Increasing revenues over the past 3-5 years
• Stable or growing EBITDA margin
• Well-filled order pipeline
• Diversified customer base without critical dependencies

Buyers pay for future potential, not past achievements. A demonstrable positive trend in these metrics can significantly increase the achievable EBITDA multiple.

How do market and industry cycles affect the sale value?

Market and industry cycles have a significant impact on your sale value. Growing industries lead to higher multiples, while consolidation phases offer good selling opportunities to strategic buyers. In the case of disruptive changes, an earlier sale may be advisable before traditional business models lose value.

Interest rate policy also plays an important role. During low-interest phases, buyer willingness increases due to more favorable financing options for potential buyers.

When am I personally ready to sell my business?

You are personally ready to sell when:

• Your motivation and energy for day-to-day operations decline
• Your health situation makes a long-term commitment uncertain
• You have prepared a succession plan (ideally 3-5 years in advance)
• Your private retirement provision is sufficiently secured for retirement

A common mistake is waiting too long until age or health issues force a sale. This significantly weakens your negotiating position and often leads to substantial price reductions.

How long does preparation for a business sale take?

Preparation for a business sale typically takes 12-24 months and involves four essential steps:

1. Professional business valuation: Realistic assessment of your company’s value through well-founded valuation methods

2. Addressing weaknesses: Optimizing balance sheets, contracts, and documentation; implementing transparent processes

3. Strengthening value drivers: Improving ESG criteria or targeted digital transformation to increase value

4. Creating a professional sales prospectus: Structured presentation of all relevant information according to our guide on creating a sales prospectus

The earlier you start this preparation, the more flexible you are regarding the actual timing of the sale.

What external factors influence the optimal time to sell?

The timing of the sale is also influenced by external factors you should monitor:

• Current economic situation and outlook
• M&A activity in your industry (seller’s or buyer’s market?)
• Availability of financing options for potential buyers
• Upcoming political or regulatory changes

The M&A market has its own dynamics that can affect the sales process. An M&A advisor can professionally assess these factors and advise you whether an immediate sale or strategic waiting would be more advantageous.

How do I find the perfect time to sell my business?

You find the perfect time through the right combination of:

• Proven strong company performance (ideally 3+ years of growth)
• Positive development in your industry
• Your personal readiness to let go
• Thorough preparation of at least 12 months
• Favorable external factors such as economic conditions and financing terms

Ideally, start preparing 3-5 years before the planned sale. This gives you enough time to optimize all value drivers and choose the ideal market entry point.

Keep in mind: a well-prepared company will find a buyer even in tougher market phases, while an unprepared company may have to sell below value even during boom periods. Therefore, invest in thorough preparation—the time invested pays off in a higher sale price.