When it comes to selling a business, many owners believe the key is waiting for the right economic moment. But research and decades of market data show that company-specific readiness, not market timing, determines the success of an exit. Jessica Fialkovich, President and Founder of Exit Factor, explains that valuations for privately held companies have remained remarkably consistent for more than 25 years—even through recessions and global disruptions. Instead of chasing headlines or reacting to economic cycles, business owners should focus on what they can control: profitability, operational strength, and strategic timing within their industry.
Historical data supports this approach. During periods of economic volatility, valuations in the private sector have remained stable, while well-prepared companies continued to sell at strong multiples. Even post-pandemic, small business transactions reached record highs, with U.S. business investment exceeding pre-pandemic projections by hundreds of billions of dollars. These trends reinforce that the best time to sell is rarely dictated by Wall Street—it’s when a business is financially sound, well-managed, and operating within a healthy or growing industry.
A company’s internal health provides the most reliable signal for when to start planning an exit. When growth begins requiring more effort for less return, or when an owner’s long-term commitment starts to wane, it’s often time to prepare for transition. Building a business that can run efficiently without heavy owner involvement is another critical marker of readiness. Buyers are drawn to companies that can operate independently, deliver consistent profitability, and show a clear path to continued success.
Owners looking to increase value ahead of a sale should focus on three key areas: bottom-line profitability, operational efficiency, and realistic valuations. A lean, profitable business that runs on systems—not people—is far more attractive than one dependent on its founder. Overestimating value or relying on speculative metrics can undermine negotiations, while a data-driven approach builds credibility and confidence with buyers. The businesses that consistently sell for premium prices are those that invest in strengthening these fundamentals well before they go to market.
Ultimately, successful exits are driven by preparation, not prediction. While public markets fluctuate daily, private business sales follow a longer and more strategic process. Owners who start preparing years in advance—by improving profitability, streamlining operations, and assessing industry momentum—are best positioned to achieve a sale on their own terms. By focusing on what’s controllable inside the business, rather than waiting for ideal external conditions, owners create stronger, more valuable companies and more rewarding exits.
This article was originally published by Entrepreneur.