Signs that it is time to sell a business

‘How do I know when to sell my business?’ is a valid question and one that’s not always easy to answer. There are all sorts of factors that can influence your decision, ranging from your goals to the current market conditions. 

For example, if the business is a small family operation and you want to retire to a beach somewhere, the right time to sell is typically when the business and the wider economy are performing well, as that will allow you to maximise your profit. 

On the other hand, you may be looking to sell because you’ve reached a natural growth plateau, or the business requires investment or energy you can no longer provide. In either case, the best time to sell the business is when it demonstrates strong fundamentals, such as steady cash flow and loyal customers. That will help a prospective buyer to see beyond your tenure.

Spotting the right time to sell a business can mean the difference between a profitable exit and a missed opportunity. And while every business is unique, there are some common signs that suggest selling could be the right move.

When to sell my business - 7 signs that now could be the time

1. You’ve lost the passion 

Recognising that your heart is no longer in the business is a clear sign that it’s time to sell. Your business may be successful and highly profitable, but over time, the passion that once fuelled those late nights and the resilience to push through the challenges can fade.

If your interests have changed or the business no longer inspires you, it’s advisable to sell before your disengagement impacts its performance or team morale. Selling at the right time will protect the company’s momentum, maximise your return and allow you to switch to something that better aligns with your interests and goals.   

2. You’ve taken it as far as you can

Entrepreneurs often build businesses that are rooted in their skills, knowledge and interests, but there can come a time when they feel they have nothing more to add. 

As a business grows, the skills required to manage it change. The financial management and strategic skills to scale a business may not be something you feel you have, or your interests may have shifted. In either case, it might be time to sell it and let a buyer with a different skillset take it to the next level.   

3. The business and wider economy are performing well 

Depending on your long-term goals, the best time to sell your business may be when everything is going well. If the company’s financial performance is strong and the external environment is in your favour - think consumer confidence and positive growth trends in the industry and wider economy - it could be an opportune time to sell. 

Many owners assume that value will continue to rise indefinitely. However, constantly shifting markets and broader economic trends mean that selling when the business is profitable and conditions support a strong valuation can lead to the best outcome.

4. The business requires investment

As a business owner, you cannot afford to stand still. With technology constantly advancing and competitors eager to gain ground, you must continually invest in the business to stay one step ahead.  

However, there may come a time when you don’t want to take on more debt, invest your own funds or bring in new partners. At that point, it might be better to sell the business to buyers with deeper pockets or better access to funding who can keep it moving in the right direction. 

5. You receive an unsolicited offer

Deciding when to sell a business doesn’t have to be something you plan. Receiving an unexpected and attractive offer could be a clear and unexpected sign that it’s time to sell. 

Selling a business off‑market is always something to be wary of, as it removes the competitive element that can drive the price up. However, if you receive a higher-than-expected offer, it’s definitely something to consider.

The first step is to get a professional business valuation to help you understand just how good the offer is. It’s then vital that you conduct due diligence to qualify the buyer and ensure they have the financial capacity to complete the purchase.     

6. Your industry is shrinking

Trends in technology and human behaviour constantly shift, potentially having a significant and ultimately catastrophic impact on your business. If you notice that sales are waning regardless of what you do, your best bet may be to sell. 

Understandably, shrinking businesses are not attractive to buyers, so do what you can to innovate, evolve and find new ways to keep money coming in. However, if you’re out of options, your business and its assets may still be an attractive investment for a competitor or a buyer with a plan.       

7. There’s no one to carry it on

Family-run and other small businesses may not have a natural successor to carry the business on. In that case, if you’re ready to retire or want to switch to something new, selling it will enable it to thrive under new ownership while giving you a timely financial boost.  

Is it the right time to sell my business?

At Eddisons Business Sales, we take the time to understand your circumstances and use our market expertise to advise whether it might be an advantageous time to sell a business in your sector and location. We also provide professional business valuations to give you a clear picture of your business’s worth so you can make a confident, well‑informed decision.

If you decide to go ahead, we can guide you seamlessly through the sale. We help you prepare the business, create detailed listings and market it to our existing network of buyers and more widely. Our team also manages due diligence and offers strategic support during negotiations to help secure the best outcome.

Find out more about business sales, including our sales process, and get in touch for a confidential discussion about the best route forward.