The decision to sell a company is a common dilemma for many entrepreneurs and is often accompanied by uncertainty about the ideal time to proceed with the sale. The truth is that it's difficult to know if you're selling too early, and unfortunately, you often only realize it when it's too late.
Selling too early can mean giving up future gains, while waiting too long can result in loss of value, opportunities, and buyer interest. There is no magic formula for this decision, as it depends on multiple factors, such as market and industry conditions, the company's stage of maturity, and the owner's personal motivations.
However, while there is no ready-made recipe, there are strategic factors—such as preparation, organizational health, and planning—that directly influence the success of a company's sale and, therefore, should be considered. These include:
The time factor: preparation is key.
Many people are unaware that selling a company takes time. The sales process doesn't happen overnight. Generally, it takes 6 to 12 months to complete, and this can be extended depending on the complexity of the business.
Preparation is a competitive advantage. Business owners who organize themselves in advance, structuring the information and documents necessary for due diligence (audit), convey a message of confidence and demonstrate that the business is well managed.
A common mistake is waiting to feel "ready" to sell. When the ideal buyer appears, a lack of updated documents, revised contracts, or proper accounting can cause the opportunity to be lost. Therefore, the best preparation is one that begins early, planning for the future of the company itself.
Selling at a healthy time
Another misconception is waiting for the company to show signs of strain or difficulty before initiating a sale. The best time to sell is when there is no urgency, that is, when the company is healthy and growing. Few buyers are interested in businesses in crisis, unless they are specialists in special situations.
A company with consistent results and good growth prospects attracts more investors, who are willing to pay more because they see security and potential for return.
Most of the personal wealth of many business owners is concentrated in their businesses, which makes the decision even more relevant. Although the mergers and acquisitions (M&A) market in Brazil moved more than R$200 billion in 2024, most sales processes do not conclude satisfactorily. This happens due to problems identified in due diligence or the lack of a clear exit strategy.
The importance of planning and consulting.
There are situations where selling becomes a necessity to avoid losses, even if the ideal price is not achieved. In these cases, the sale acts as a protective measure in less favorable conditions.
The key to a successful sales process is preparation. Having specialized M&A consultants on board can make all the difference, as they help assess scenarios, organize documents, and identify the most opportune time to go to market.
Ideally, this planning should begin at least 18 months in advance. This preparation not only increases the chances of a successful sale, but also strengthens the company's governance and management, and may even boost its growth if the sale does not materialize.
Selling at the right time requires a balance between reason and sensitivity. Procrastination and indecision can be costly. Those who prepare in advance position themselves in a position of strength, significantly increasing their chances of closing a profitable deal at the right time and with the right buyer.
Antonio Mazzucco is a specialist in corporate business law and a partner at Mazzucco&Mello Law Firm.