Why Selling Your Business When It’s Thriving Could Be Your Best Move Yet!

When is the best time to sell your business? I often speak with business owners who are indecisive about the 'when the best time is to sell their business.'

If you’re like many business owners, you might think the answer is simple: wait until you hit your peak. But here's the catch - by the time your business has reached its peak, it may already be on the way down. The most successful sales often happen when a business is performing well, but still has future growth potential for the new owner.

Let’s uncover some rationale for why selling when your business is thriving, rather than waiting, could be your smartest strategy.

The ‘Don’t Wait for the Peak’ Principle

Imagine a business owner named Geoff. He runs a manufacturing company that has generated steady revenue growth over the last decade. Three years ago, his business hit the $13 million revenue mark, and in the last year alone, she saw an impressive 15% growth. But like many business owners, Geoff is deeply committed to his company. He’s not in a hurry to sell, he believes his business has more to achieve before he steps away. He wants to wait until he’s hit “the peak,” thinking that’s when he’ll secure the best price, after all, it's only another year away from really being something. (this is very much like picking the top of the stock market or backing the Melbourne Cup winner)

Fast forward three years. The market changes, a competitor introduces a game-changing innovation, and the overall economy softens. Suddenly, Geoff’s business starts to plateau, and after a few more months, his revenues begin to decline slightly. The company is still solid, but no longer on the upward trajectory it once had. When Geoff finally decides to sell, potential buyers perceive the business as a riskier investment. Instead of being able to leverage his company’s momentum to negotiate a higher price, he’s faced with justifying why the decline is only temporary.

Geoff’s story is one I’ve seen repeated time and again. By waiting for that elusive peak, they missed out on the optimal window to sell. The time when their business was still growing and attractive to buyers. While the potential buyers were still interested and active, Geoff's company could have commanded a premium price. Instead, he entered negotiations from a place of defense, rather than strength.

Why You Should Sell While Your Business is Thriving

When your business is doing well, buyers are attracted by the growth potential. They see your company as an investment with momentum, something they can build on. Selling when you’re thriving gives you leverage. It shows that your business isn’t just coasting; it’s growing and still has room to expand. That’s a key factor that buyers are willing to pay for.

On the flip side, waiting for the “peak” can be risky. Peaks are often only visible in hindsight. It’s easy to get caught up in the belief that more success is around the corner, but markets shift, industries change, and what once seemed like a smooth ride up can start feeling like a roller coaster going down.

A Buyer’s Perspective

Put yourself in a buyer’s shoes. You’re looking at two businesses: one that is steadily growing and one that is plateauing or slightly declining. Even if both are generating $13 million in revenue, the first business, the one with consistent growth, is going to look far more appealing. Buyers want to invest in a business they believe has future potential, not one that they’ll have to work hard to rescue.

This is why timing your sale is so critical. The sweet spot is when your business is thriving and has a future that buyers can get excited about. Selling while you’re on the up gives buyers the confidence that they can take the reins and keep the momentum going.

The Opportunity You Don’t Want to Miss

The best time to sell isn’t when you’ve reached the top of the mountain, but when you’re halfway up and still climbing. At that point, buyers will see the path ahead and want to join you for the rest of the journey.

So, if you’re sitting on a business that’s doing well, don’t let the allure of reaching the peak hold you back. Consider selling while you’re still in growth mode, because that’s when you’ll command the highest price, have the strongest negotiating position, and ensure your business’s legacy continues to thrive in the hands of its new owners.

Selling your business is a huge decision, but waiting for the “perfect” moment could be the biggest risk you take. As a business broker, I’ve seen the power of selling at the right time, when the business is strong, healthy, and still on the rise. It’s not about selling because things are going wrong; it’s about selling because everything is going right.