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What is the Perfect Time to Sell a Business?

What is the Perfect Time to Sell a Business?

Entrepreneurs pour their blood, sweat and tears into their businesses. For this reason, few entrepreneurs want to sell their businesses. However, in the life of every entrepreneur there will be several instances where selling their business may be the right decision.

No need to wait for the Corleone’s to “make you an offer you can’t refuse😉 — start thinking now about when you might want to sell your business.

  1. Business is Booming

Much like being on a hot streak at the roulette table, when your business is profitable it can be difficult to even think about walking away. However, if your business is recording profits year over year, this is precisely when you should begin crafting a game plan for when to sell.

For a positive valuation, a business will generally need 12 to 24 months of good results. We don’t need to explain to you the harm that the COVID-19 pandemic and the lockdowns that followed had on small businesses. However, if your business survived the pandemic, you have likely returned to or exceeded the profits your business was recording before the pandemic. To net the highest possible return on a sale, entrepreneurs should start planning for a sale when their business is profitable.

  1. Health Scares

No one is immortal. Experiencing a health scare, whether your own or a loved one’s, can make even the most stoic business owner grapple with existential questions.

To negotiate from a position of strength, business owners should think long and hard about whether there may be health issues on the horizon and consider getting out while the going is good. Life is woefully short, and nobody has ever regretted spending less time in the office.

  1. Succession Issues

Perhaps you had planned for your children to take over the business one day only for them to find their callings elsewhere. Or maybe you were hoping to find your successor amongst your current crop of employees, to no avail. In any event, you now find yourself without a succession plan.

With no clear successor in mind, it may be time to kick the tires on selling your business. We understand how challenging it can be to hand off the business you’ve put so much effort into. However, when questions about succession arise, it may be time for you to consider cashing out and enjoying the fruits of your labour.


The best time to begin planning for the sale of your business is when times are good. To put yourself and your loved ones in the best possible financial position, don’t wait for life events or economic pressures to force your hand—start planning your next move now. If you are interested in learning more about how gbtlaw can help you, please contact one of our business law professionals.


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