For most entrepreneurs, starting and operating a business is a heartfelt journey that goes beyond a simple career—your drive, determination, and vision channeled into something uniquely yours.
Yet, just as launching your business required strategic planning, choosing when to sell your business demands equal care and foresight. Whether you’re looking toward retirement, tackling unforeseen hurdles, or just eager for a fresh start, determining the perfect moment to sell preserves both your financial future and the legacy of your business.
At Hancock Whitney, we’re here to guide business owners like you through these important decisions, including when and how to exit your business. Let’s explore the key factors to consider when you think it might be time to sell your business and make the most of your hard work.
First things first: Why do you want to sell your business? Your reasons have a profound impact on everything—when to sell, the business valuation, and who the right buyer might be.
Maybe you’re ready to retire, start a new venture, or spend more time with family. Or perhaps you’re feeling burned out or facing tough market conditions. Knowing your “why” helps you make clear, confident decisions and enables you to express your reasons to buyers, advisors, and your team.
Understanding your motivation isn’t just personal—it’s strategic. It keeps you focused on what matters most, whether that’s maximizing the sale value or ensuring your business’s legacy lives on.
Selling when your business is thriving can mean a bigger payout. Selling at peak value—when sales are strong, profits are steady, and growth looks promising—makes your business attractive to buyers and justifies a higher asking price.
Here’s what ideal conditions for selling at peak business value look like:
Selling at peak value isn’t just about the numbers—it’s about showing buyers a business with a bright future. At Hancock Whitney, our advisors can help you analyze your business’s performance and market trends to find the perfect moment to sell.
Getting an offer to buy your business feels exciting, but not every deal is the right one. An unsolicited offer from a potential buyer might signal market interest, but you need to dig deeper to ensure it’s a good fit. Ask yourself:
You’ve poured your heart into your business, so finding a buyer who values it as much as you do matters. This is especially true for your team, who may worry about their future after the ownership transition.
A rushed sale could cost you value, so obtain a professional business valuation to confirm that the offer and timing make sense. Hancock Whitney’s professionals can guide you through this process to protect your interests.
Sometimes, life makes it necessary to sell a business sooner than planned. Burnout, health issues, family changes, or financial struggles can make selling a necessity.
Common reasons for selling a business out of necessity include:
In these cases, the goal is to maximize the value as much as possible while ensuring a smooth transition. Even if you’re not ready to sell now, planning ahead can make unexpected sales due to external factors less stressful.
Without an exit strategy, you might have to sell your business for less than it’s worth. Hancock Whitney can help you prepare for these scenarios to safeguard your financial future.
Maybe your business is doing fine but isn’t growing anymore. A “growth plateau” happens when scaling up takes more time, money, or expertise than you have available. Signs it’s time to sell your business due to a plateau include:
If your business has potential but needs fresh energy, a strategic sale can unlock its next chapter. A new owner with resources and vision can build on your foundation while rewarding you for your work. This is a smart way to exit while your business still has value.
No matter when you plan to sell, every business needs an exit strategy. It’s like a roadmap that keeps you in control, whether you’re selling next year or in a decade. A solid exit plan includes:
Hancock Whitney’s team can help you craft an exit plan that protects your legacy and maximizes value, so you’re ready whenever the time comes to sell your business.
Choosing when to sell your business is not a one-size-fits-all decision. It’s about balancing your goals, emotions, and the market’s realities. By understanding your "why," evaluating the market conditions, and preparing with a clear plan, you can exit the business on your terms and secure the rewards of your hard work.
At Hancock Whitney, we’re your trusted partner in navigating these big moments. Our experienced advisors and bankers are here to support you, whether you’re exploring a sale now or planning years ahead. Ready to talk about when to sell your business? Contact Hancock Whitney today to start your journey toward a successful exit.