Exit timing: How to maximize value when exiting your business

Timing your exit isn’t about guessing the peak. It’s about understanding the intersection of company readiness and market opportunity. Strong fundamentals, disciplined operations, and clear growth narratives attract good buyers and investors even in uncertain markets. But when those strengths align with favorable market conditions, valuations are often maximized.

Determining readiness requires both introspection and data. Internally, owners must assess immediate, near, and long-term growth visibility; leadership succession; financial performance and operational KPIs; and the relative competitive position in their target markets.

Operational readiness and proving your growth runway play a crucial role. For example, a manufacturer opening a new facility that is operating well below capacity may not be able to prove the full benefit of that investment. Yet, selling when the facility is at full capacity can also be a hindrance, signalling to buyers that further investments are needed to continue growth. Many owners find the optimal window is when the benefits of expansion are being realized but there’s still room to create additional value.

Externally, it’s about understanding the relevant markets—sector valuations, cost of capital, availability of capital, buyer appetite, and broader sector trends. The timing decision should take all these factors into view.

Consider an entrepreneur in a rapidly growing consumer packaged goods business who delays selling in pursuit of additional growth. As time goes on, cheaper competitors enter the market, undercutting the brand and reducing sales velocity. By the time the owner decides to sell, the changed industry dynamics result in the business losing significant value, highlighting the risks of waiting too long in a fast-changing market. Strong businesses still attract strong valuations, but timing can make a significant difference in maximizing value.

Beyond readiness and market conditions, a thoughtful market timing strategy also requires alignment between ownership objectives and the company’s next phase of growth. For some, that may mean de-risking through a partial sale to a private equity partner to monetize a portion of the business at today’s value and then share in the upside value potential. For others, it could mean pursuing a full exit while the business is demonstrating strong momentum and market leadership—monetizing the full value of the business today and foregoing exposure to future growth in value. Personal factors, such as retirement readiness, health considerations, or a desire to pursue new ventures, often shape this decision alongside business growth plans. Whatever the objective, clarity on the shareholders’ desired objectives helps define what “the right time” really means.

The best outcomes are rarely the result of chance. They’re built through preparation, performance, and an understanding of market timing. Owners who plan ahead—by strengthening governance, building management depth, and maintaining clean financials and operational KPIs—create optionality. When opportunity knocks, or when market conditions coincide with shareholders’ objectives, they’re ready to act with confidence.

Timing the exit right isn’t about luck. It’s also not about finding someone who will overpay. It’s about preparation, perspective, execution, and delivering a strong business that investors and buyers can lean into.

KPMG’s Deal Advisory team works with business owners to navigate the complexities of exit planning with clarity and confidence. Drawing on deep sector knowledge, data-driven insights, and end-to-end transaction-to-transformation capabilities, we help clients assess their readiness, align timing with strategic and market dynamics, and prepare for a successful transition.
 

Whether you’re exploring your options or preparing to go to market, we focus on unlocking value, enhancing business performance, and ensuring your exit supports both your financial goals and long-term legacy.