When is the best time to sell my business?

After two years of demonstrable improvement — not after one exceptional year. Valuation follows a trend, and a single strong year immediately raises the question a buyer is trained to ask: why are you selling right after your best year?

#What a good moment looks like

• Two or three years of consistent, upward, explainable performance
• The business runs without you for a month without incident
• No customer above 20% of revenue
• A management layer, or at least a credible second-in-command
• Accounts that reconcile without needing you to explain them

#What a bad moment looks like

One outstanding year after two flat ones. A major contract renewing in under twelve months. A key employee about to leave. Or the most common of all — you are exhausted, which is a real reason to sell and a terrible position to negotiate from.

#Market timing versus business timing

Interest rates and credit availability move multiples across the board, and there is nothing you can do about them. Your own trend, concentration and dependence move your multiple specifically, and you can do a great deal about those. Optimising the second is a better use of two years than waiting for the first.

Preparing your business for sale covers the runway; common valuation mistakes covers the one-good-year problem.