5 signs that show it's time to sell your business

1. Your motivation and energy are declining

Entrepreneurial fatigue is a warning signal often underestimated. If you notice that your enthusiasm for your business is eroding, that daily challenges weigh on you more than before, or that you no longer have that passion that drove you at the start, it's time to be honest with yourself.

This drop in motivation isn't just a personal matter: it directly impacts your company's performance. A disengaged leader takes fewer initiatives, misses growth opportunities and may see their business stagnate or decline.

The time to sell is ideally situated before this decline becomes visible in your financial results. A healthy business, driven by positive momentum, will always sell better and at a better price than a company losing steam.

Practical advice: Take an honest assessment of your state of mind. If you've been waking up in the morning without wanting to go to work for several months, that's a strong signal. Anticipating this transition will allow you to sell under the best conditions rather than waiting for a critical situation.

To avoid common pitfalls during this transition, consult our guide on the 7 most common mistakes when selling an SME.

2. The question of succession arises (retirement, health, life project)

In Switzerland, we're in the midst of a historic wave of business transfers. Baby boomers are reaching retirement age and it's estimated that 75,000 businesses will need to be transferred by 2030. If you're between 55 and 65 years old, you're probably part of this generation.

But age isn't the only factor. Health problems, the desire to pursue other life projects, the wish to spend more time with family or simply the desire to enjoy the fruits of your labour are all legitimate reasons to consider the sale of your SME.

The classic mistake? Waiting until the last moment. A successful company transfer requires preparation of at least 3 to 5 years. This timeframe allows you to:

• Optimise your business valuation

• Implement governance less dependent on you personally

• Identify and qualify potential buyers

• Prepare the necessary documentation

• Organise a smooth transition

Warning signal: If you're considering retirement in the next 5 years and haven't yet started thinking about succession, it's time to act now.

3. The market offers you a favourable opportunity

Market conditions fluctuate, and some periods are more favourable than others for selling a business. Being attentive to the dynamics of your sector can allow you to seize an exceptional window of opportunity.

Signs of a favourable market:

• Positive economic context: low interest rates, easier access to financing, investor confidence

• Growing sector: your industry is experiencing expansion, attracting new players

• Sector consolidation: competitors or larger groups are actively seeking to acquire SMEs like yours

• Strong demand: you're receiving spontaneous approaches from potential buyers

• High valuations: valuation multiples in your sector are at their highest

These signs to sell your SME don't last forever. Economic cycles change, sector trends evolve. Seizing the right moment can make a significant difference to the final sale price.

Practical advice: Stay informed about your market trends. Attend sector events, follow comparable transactions, and regularly consult transfer experts to assess the current climate.

4. Your business reaches optimal valuation

There's a moment when your business reaches its peak performance and valuation. Recognising this moment and acting accordingly is an intelligent strategy to maximise the return on your investment of all these years.

Indicators of optimal valuation:

• Financial results at their highest: turnover and profitability in constant growth

• Stable and predictable growth: clear and reassuring trajectory for a buyer

• Full order book: visibility on future revenues

• Autonomous team: little personal dependence on the owner

• Valued assets: recent equipment, protected intellectual property, loyal customer base

Selling at a time of high valuation may seem counter-intuitive ("why sell when everything's going well?"), but it's precisely at this moment that you'll obtain the best price and attract the best buyers.

Conversely, waiting for results to start declining will significantly reduce your company's value and complicate the search for a buyer.

First step: Have a professional valuation of your business carried out to know its real value. On Leez.ch, you can obtain a free estimate and discover your SME's potential on the market.

5. You feel that a major strategic pivot is necessary

Is your business facing structural challenges that require profound transformation? Complete digitalisation of your processes, a change in business model, massive investments in new technologies, or international expansion?

These major strategic pivots require enormous energy, financial resources and often new skills. The question to ask yourself honestly: do you have the desire, capabilities and means to lead this transformation?

Sometimes, the answer is no. And that's not a failure. Recognising that a new owner, with a different vision, fresh resources and the necessary energy, would be better placed to operate these changes is a form of entrepreneurial wisdom.

How to know if it's the right time to sell in this context? Ask yourself these questions:

• Do I have the passion and energy to lead this transformation over 3-5 years?

• Do I have the necessary financial resources without putting the business at risk?

• Do I have the skills or can I recruit the necessary talent?

• Does this transformation align with my personal vision?

If several answers are negative, selling your business to someone who possesses this vision and these capabilities may be the best decision to ensure its sustainability and your own well-being.

What to do if you recognise these signals?

Do you recognise yourself in one or more of these signals? Here are the first concrete steps to prepare the sale of your business under the best conditions:

1. Have your business valued
Start by obtaining a professional valuation to know the real value of your company. This will give you an objective basis for your future reflections and decisions.

2. Prepare your documentation
Gather your financial statements from the last 3 years, your key contracts, the list of your main clients, your legal structure, etc. Complete and organised documentation inspires confidence in potential buyers.

3. Consult transfer experts
Selling a business is a complex process with legal, tax, financial and human dimensions. Surrounding yourself with specialised professionals will help you avoid costly mistakes.

4. Don't rush, but don't wait either
A successful transfer takes time (12 to 24 months on average). Starting too late will put you under pressure and reduce your options. Starting earlier allows you to optimise every aspect of the transaction.

To maximise your chances of success, discover the mistakes to absolutely avoid when selling an SME.