When to sell your business in Switzerland
Introduction
Selling your business is one of the most important decisions of your entrepreneurial career. The timing of this decision can make the difference between a successful transaction at the best price and a rushed sale that leaves value on the table.
Contrary to popular belief, the right time to sell is not simply about reaching retirement age. It depends on a combination of personal factors, the health of your business, the economic context and your sector of activity. Some business owners wait too long and see their company lose value. Others sell too early and miss growth opportunities.
In Switzerland, where the process of selling an SME generally takes between 6 and 18 months, anticipation is essential. Companies that prepare 3 to 5 years in advance achieve significantly higher valuations and find qualified buyers more easily.
This guide helps you identify the signals that indicate it is time to sell, the periods to avoid, and how to objectively assess whether the time has come for you. An informed decision begins with a rigorous analysis of your situation.
📌 Summary (TL;DR)
The optimal timing to sell your business depends on internal signals (personal motivation, energy, succession), the financial health of your company (growth, profitability, dependence), and the economic and sector context. Anticipating 3 to 5 years allows you to optimise valuation and taxation. Avoid selling during a period of personal crisis, performance decline or major economic turbulence.
📚 Table of contents
Internal signals that indicate it is time
Several personal and professional signals suggest that the time to sell your business is approaching.
Age and retirement constitute the first indicator: between 55 and 70 years old, many business owners consider succession. Entrepreneurial fatigue, after 20 or 30 years at the head of the company, represents a legitimate signal.
The absence of a family successor also forces reflection. If your children do not wish to take over the business, anticipating the sale becomes essential.
Loss of motivation or the desire for new projects are also valid indicators. Managing without passion impacts the performance and value of the business.
To understand all the stages, consult our complete guide on how to sell your business in Switzerland.
The state of health of your business
The optimal timing to sell depends directly on your company's performance. Buyers seek businesses in good health.
Key indicators:
- Turnover growth over a minimum of 3 years
- Stable profitability with positive EBITDA
- Full order book
- Autonomous and competent team
Selling from a position of strength maximises value. A struggling or declining business attracts fewer buyers and is negotiated at lower multiples.
Absolutely avoid selling in a crisis situation: sharp drop in turnover, loss of major clients or cash flow problems drastically reduce your negotiating power.
To estimate the current value of your business, use our valuation tool or consult our article on business valuation in Switzerland.
The economic and sector cycle
The macro-economic context directly influences the timing of sale and valuations.
The Swiss economic situation plays a major role: during periods of growth, buyers are more numerous and multiples are higher. Interest rates also impact acquisition financing.
Certain sectors experience specific cycles. Digitalisation is currently creating opportunities in e-commerce and digital services. Waves of consolidation in industry or healthcare generate windows of opportunity.
Sector trends can multiply the value of your business: a growing sector attracts more strategic buyers willing to pay a premium.
Observing your market and identifying these windows of opportunity is an integral part of the sale strategy.
Anticipating: why 3 to 5 years is ideal
Long preparation significantly increases the value of your business and the chances of success.
The advantages of anticipating 3 to 5 years:
- Progressive and legal tax optimisation
- Improvement of processes and profitability
- Complete and structured documentation
- Empowerment of the management team
- Reduction of dependence on the business owner
This period also allows you to adjust the strategy according to market developments and identify the best time to launch the sale.
Prepared companies sell faster, on better terms, with less risk of failure during due diligence.
To maximise your net gain, consult our detailed guide on tax optimisation 5 years in advance.
The wrong times to sell
Certain situations drastically reduce the value of your business and complicate the transaction.
Avoid selling in these contexts:
- Urgent sale: illness, burnout or personal problems place you in a position of weakness
- Recent performance decline: drop in turnover or profitability
- Ongoing disputes: conflicts with clients, suppliers or employees
- Strong dependence on the business owner: the company does not function without you
- Incomplete documentation: approximate accounting or missing contracts
These situations frighten buyers, reduce valuation multiples and increase the risk of transaction failure.
Discover all the common mistakes to avoid during a sale.
How to know if it is the right time for you
Assess your situation with this practical self-assessment grid.
Four essential questions:
- Are you emotionally ready? The sale represents a major life change
- Is the business ready? Up-to-date documents, autonomous team, solid finances
- Is the market favourable? Economic situation and sector dynamics
- Are your objectives clear? Target amount, timeline, project after the sale
If you answer yes to these four questions, the timing is probably right to sell your business.
An expert can help you objectively assess your situation. Consult our network of partners specialising in business succession.
You can also test the market by listing your business on the Leez platform to assess buyer interest.
The right time to sell your business lies at the intersection of several factors: your personal situation, the health of your business, and the economic context. Internal signals such as declining motivation, absence of family succession or approaching retirement should be taken seriously. A growing business with solid finances and a stable team will always sell better than a struggling structure.
Anticipation remains your best asset. Preparation of 3 to 5 years allows you to optimise value, structure tax aspects and find the right buyer without rushing. Avoid selling in an emergency, in the midst of a personal crisis or during a sector recession.
If you are considering a sale in the coming years, start by evaluating the value of your business free of charge. You will obtain an initial estimate and can plan the next stages of your succession with peace of mind.
