With trade disputes, fluctuating energy prices and geopolitical uncertainty dominating business headlines, many business owners are wondering if now is the right time to sell their business. Economic volatility often creates the perception that buyers will withdraw and valuations will fall, prompting some entrepreneurs to postpone exit plans.
However, according to mergers and acquisitions advisor Mark Herbick, founder and CEO of the firm Pursant, external events are rarely the primary factor in determining whether a business owner should pursue a sale. Instead, the decision depends on a combination of market conditions, business performance and personal readiness.
Looking beyond the headlines
It is understood that business owners pay attention to macroeconomic trends. Tariffs can reshape supply chains, conflicts can disrupt markets, and commodity price fluctuations can affect profitability. However, Herbick argues that these factors must be placed in context.
“A lot of people think that because of the things going on right now — the war, oil prices, tariffs — it’s a bad time to sell,” Herbick explains. Digital Magazine. “But it’s not necessarily those things in themselves that make it a bad time. Determining the right time is more complex than that.”
This perspective reflects a common observation within the mergers and acquisitions (M&A) sector. While broader economic conditions influence transaction activity, successful deals often occur during periods of uncertainty. What often matters most is the specific situation of the business itself and the readiness of the owner.
Especially for mid-market companies, buyers often look beyond short-term economic fluctuations and focus on long-term indicators such as growth potential, cash flow stability, market position and strategic fit.
Three factors that must be harmonized
According to Herbick, there is an ideal scenario to maximize the likelihood of a successful transaction. “The perfect time to sell is when three things line up,” he says. “The market is in good shape, your business is in good shape, and you personally are ready to exit.”
The first element is the state of the market. When capital is readily available and buyer demand is strong, sellers generally enjoy more competitive offers and potentially higher valuations.
The second factor is the state of the company itself. Buyers are naturally attracted to businesses that demonstrate growth, resilience and a clear strategy for the future.
The third factor is personal readiness. Even when financial and market conditions are favorable, an owner may not be psychologically prepared to walk away from the company they have spent years, or even decades, building.
Herbick notes that when all three conditions are present, owners are likely to achieve the best results. When they are not, the most important consideration often becomes the owner’s own willingness to make a transition.
However, there is one important exception: “If you’re miserable in your business, you should sell,” says Herbick. “Personal misery above all else.”
Three questions owners should ask
For business leaders considering an exit, Herbick recommends three key questions.
- Is the business growing, stable or declining?
Growth remains the most attractive condition for a sale. “Growth is the perfect selling situation,” notes Herbick. “Stable is less than perfect. The drop is not great.”
A company that shows strong momentum usually attracts a wider range of buyers. Growth signals opportunity, while underperformance typically increases buyer concerns and reduces negotiating leverage.
This does not mean that businesses that experience temporary setbacks cannot be sold successfully. However, companies that demonstrate consistent growth generally achieve stronger valuations and generate greater investor interest.
- What does the transaction market look like?
Owners should also assess whether conditions currently favor buyers or sellers.
Factors such as interest rates, private equity activity, lending availability and industry-specific demand can all affect transaction outcomes. As Herbick poses the question, “Am I selling my business in its current state in an environment that is favorable or neutral to either the buyer or the seller?” Understanding this landscape helps landlords set realistic expectations regarding valuation, deal structure and timing.
- How do you feel about running a business?
The third question may be more revealing. “When I wake up in the morning, am I energized to run my business?” Herbik asks. “When I come home at night, am I excited to get away from it — or eager to reflect on the day and celebrate the victories?”
While financial advisors often focus on earnings multiples and transaction structures, emotional engagement represents a critical but often overlooked variable. Owners who have lost enthusiasm for the business may find that operational performance suffers over time, potentially affecting value if a sale is delayed too long.
The challenge of life after an exit
A theme increasingly recognized by M&A professionals is that selling a company creates emotional challenges as well as financial opportunities. “Landlords obsess over valuation and deal terms, but they underestimate the personal side of the equation,” says Herbick.
Many entrepreneurs derive a strong sense of identity from their business. The company becomes more than a source of income; it provides purpose, routine, social interaction, and a sense of accomplishment. When this disappears, some former owners experience a sudden loss of steering.
“The grass may look greener on the other side of the fence, but it’s just as hard to mow,” notes Herbick. To address this issue, Herbick encourages clients to evaluate the sources of meaning and purpose in their lives before pursuing a transaction. It uses a 15-question assessment designed to help owners determine whether their strongest sense of identity comes from the business itself or from other areas such as family, community involvement, philanthropy or personal interests.
