09 Nov Selling While Business Is Strong Pays Off
Here’s an age-old conundrum: when your business is thriving, selling it is usually the furthest thing from your mind. When sales start to slip or the market softens, that’s when the siren call of “maybe it’s time” starts whispering in your ear.
It’s counterintuitive, but the best time to sell your business may be when it doesn’t feel like the best time. You finally have the right team in place, margins are strong, and operations are running smoothly. In other words, you’ve cracked the code and are reaping the rewards. It’s only natural to want to stay the course. But it’s also the ideal moment to look ahead.
Strong Performance Attracts Better Buyers
Buyers and lenders value stability. They look for consistent revenue, reliable systems, and a team that keeps the business humming without constant owner oversight. When those elements are in place, your business is not only easier to sell, it commands a higher multiple.
When you wait until a downturn hits, you lose leverage. Suddenly, you’re selling under pressure rather than from strength. And while a skilled broker like Michael Green can still position your business effectively, it’s always better to negotiate from confidence than necessity.
Lessons from the Pandemic
During the pandemic, we spoke with many New Mexico business owners who wanted to sell. The stress was real – depressed sales, workforce instability, on-again-off-again closures, and uncertain futures. For some, those challenges exposed how exhausted they truly were.
Unfortunately, the same factors that made them want to sell also made it difficult to find qualified buyers. Whether it was a sign-printing business in Albuquerque, a niche retailer in Santa Fe, or a catering company in Las Cruces, buyers hesitated to step in while uncertainty loomed large.
The takeaway? Market conditions can shift faster than anyone expects. Waiting until circumstances force a decision can limit your options and lower your return.
Why It Pays to Think Two Steps Ahead
Even when everything looks solid – steady sales, loyal customers, blue skies ahead – unexpected events can change your position overnight.
- A key manager decides to leave and start their own venture.
- A national competitor opens nearby.
- A partner or spouse signals they’re ready for you to step back.
You don’t have to act immediately, but you should always know where you stand. Having an updated valuation, clean financials, and clear documentation gives you flexibility. If an opportunity to sell arises – or life throws you a curveball – you’re ready to make a decision from a place of strength.
A Good Time to Reflect
Selling when your business is strong doesn’t mean walking away from success. It means ensuring that success translates into value when you’re ready to exit.
At Sam Goldenberg & Associates, we help owners understand their market position, weigh timing against goals, and prepare well before they’re ready to sell. Whether that’s six months or six years down the road, a proactive approach protects what you’ve built and positions you for your best possible outcome.
