When Should You Sell Your Business?
Knowing when to sell can make or break the outcome of your exit. In this video, Kirk Michie explains how founders can align personal readiness with strong business performance—and why going to market on an upswing, not a downturn, leads to better terms, higher multiples, and less regret.
One of the most common—and most emotional—questions founders ask is: When is the right time to sell my company?
In this episode of The Funnel, Kirk Michie explains why timing is both personal and strategic. Selling shouldn’t be a reaction to fatigue or frustration. The best outcomes happen when founders plan proactively—while the business is strong and buyers are active.
Personal vs. Market Timing
Many founders start exploring a sale when they’re burned out, approaching retirement, or dealing with a key employee or customer loss. While those are natural triggers, they’re rarely ideal conditions for commanding the best price. Buyers sense distress, and multiples tend to fall when performance is flat or declining.
The best time to sell is when you don’t have to—when revenue, profits, and momentum are all trending upward.
Signs It’s a Good Time to Go to Market
Your company is posting record revenue and profit growth.
You have a strong pipeline of future opportunities.
Your management team can run day-to-day operations without you.
Your largest clients and key employees are stable and engaged.
There’s strong M&A activity in your space, especially from private equity firms or strategic buyers.
Even if all these aren’t perfectly aligned, moving toward these conditions puts you in a far stronger position.
Avoiding Common Mistakes
Selling too soon after a down year—or in the middle of contract expirations—can hurt value. For companies with multi-year contracts, it’s best to sell early in those terms so buyers feel secure about future revenue. If you’ve had a temporary dip, wait until results stabilize before re-engaging the market.
The “right time” is rarely about age or exhaustion—it’s about momentum. Founders should sell when their business is growing, well-positioned, and attracting interest. That’s when buyers compete, multiples rise, and you have the freedom to negotiate from strength.
