Timing your exit
Is This the Ideal Moment to Sell My Business? A Close Look at SMEs
By Lee Smith · · 4 min read · Updated
Selling a business is a momentous decision for any entrepreneur, involving both emotional and financial deliberation. It is not only about the value offered by prospective buyers. Timing plays an essential role.
Editor's note, September 2026: this piece was written in 2023 and refers to the conditions of that time. The four factors still hold. The specific numbers have moved: Entrepreneurs' Relief is now called Business Asset Disposal Relief and its rate has risen, and interest rates are no longer near zero. Read it for the logic, and take current advice on the figures.
While the decision to sell or retain is ultimately personal, several persuasive factors indicate that the current moment might be as opportune as any to sell your business.
1. Recessionary risks
Despite political and economic uncertainties, the market in the years before this piece performed robustly, indicating a predominantly seller's market. But markets typically react more negatively to adverse news than they react positively to favourable developments.
Historically, when a downturn arrives, buyers withdraw until the situation stabilises, and earnings multiples fall because of the uncertainty. As a business owner, capitalising on the multiples available today can maximise your return at exit.
2. Tax relief on exit
In the UK, Business Asset Disposal Relief (formerly Entrepreneurs' Relief) allows eligible business owners to pay a reduced rate of Capital Gains Tax on the sale of their business. When this article was first written the rate was 10%. It rose to 14% in April 2025 and 18% from April 2026, with a £1m lifetime allowance.
To be eligible, you generally need to have owned the business, and been an officer or employee of it, for at least two years before selling. The direction of travel is upward, which is itself an argument for planning an exit properly rather than leaving it to chance.
3. Ready-to-invest capital
There is a great deal of capital looking for well-run businesses. When this piece was written, a Bain study put global private equity "dry powder" at over $1 trillion. That figure has grown since.
The consequence for a well-managed SME is substantial interest and, in some cases, competing bids. The caveat is that not all of that capital shares your priorities. See Legacy or liability? for how to tell the difference.
4. The cost of financing
Following the 2008 crisis, interest rates were cut to stimulate economic activity. Cheap debt made buyers more acquisitive because they could fund a deal with less of their own equity at risk.
Rates have since risen, which makes buyers who rely on heavy leverage more cautious. Operator-led buyers who fund deals from trading cash flow and partner capital, as we do, are far less affected.
The honest answer
Hindsight is always clearer regarding business entry and exit points. Several macroeconomic factors, current policies and other considerations make this an opportune moment to sell if you are prepared to move forward.
At Verdani Capital we provide fair business valuations while protecting employees and preserving founders' legacies. For a first view on what your business is worth, use our valuation guide or start a confidential conversation.
Related reading: Why now is the time to sell your business · What factors impact business valuations?
Questions this article answers
When is the best time to sell a business?
The best time to sell is usually when earnings are stable or growing, buyers have capital to deploy, financing is affordable and the owner is personally ready. Waiting for a peak rarely works because downturns arrive faster than owners expect and buyers retreat until the dust settles.
What is Business Asset Disposal Relief?
Business Asset Disposal Relief, formerly called Entrepreneurs’ Relief, reduces the Capital Gains Tax an eligible UK business owner pays on the sale of their business. The rate rose to 14% in April 2025 and to 18% from April 2026, and there is a £1m lifetime limit. Take advice on your own position.