The Funnel, Ep. 5: Should You Sell Now? скачать в хорошем качестве

The Funnel, Ep. 5: Should You Sell Now?

One of the biggest questions founders face is whether they should sell now or wait. In this episode, Kirk Michie breaks down how to make that call with clarity instead of guesswork. In Episode 5 of The Funnel, Kirk walks through how to evaluate timing before deciding to sell your business. He explains the factors founders should weigh when they’re still in the early stages of considering an exit—long before choosing a strategy or formally going to market. Using plain examples, Kirk shows when waiting is the smarter move and when strong conditions and clean fundamentals mean it’s time to go now. Kirk covers valuation climate, recent performance, pipeline strength, customer concentration, financial readiness, and sector-specific demand. He outlines how interest rates, public markets, and private market multiples affect buyer behavior, and he explains why certain industries—including professional services, software, property management, and field services—are attracting intense private equity interest. He also highlights situations where uncertainty, tariffs, or economic clouds can suppress multiples and make timing unfavorable. For founders weighing whether to sell this year, next year, or several years from now, this episode provides a practical framework. You’ll learn how to assess market conditions, evaluate your company’s trajectory, and determine whether now is the right moment—or if holding off could produce a better outcome. Transcript (Formatted) The Funnel, Ep. 5: Should You Sell Now? Speaker: Kirk Michie, M&A Advisor [Begin Transcript] Hey, founders, Kirk Michie. I’m back. We’re still working down that funnel. You’re still curious about whether you should sell your business, whether it’s the right time, whether you’ll get enough money. You’re not quite ready to move into the strategy phase, and you’re certainly not yet at the “yes, let’s go” point. One of the final questions you ask before developing your strategy is: should I sell now? It’s a relevant question, and while there are many factors to look at—maybe a dozen—I’ll streamline it for you. If your business is coming off a bad year and you know you’re on an upswing but haven’t yet proven the recovery, and you have the time to wait, don’t sell now. On the other hand, if you’re having a fantastic year, your pipeline looks good for next year, and the environment is favorable—meaning interest rates are stable or going lower, public markets are strong, and private market multiples are holding up—then go now. If you’ve reduced customer concentration, professionalized your financials, and built a capable management team to transition after you go, this is a good time. Don’t wait for the economy or your business to be even better next year. If you’re ready, go now. But there are exceptions. If you have a manufacturing business and tariffs are creating uncertainty about cost-sharing, pricing, or duration, that’s a major question mark for any buyer—especially private equity buyers. With a cloud like that, you won’t get top dollar. If you don’t have to go now, even if next year could be economically worse, you should probably wait unless you’re sure the right buyers and multiples will still be there. There are also hot sectors. Professional services—like wealth management, accounting, management consulting, engineering—are extremely attractive to private equity right now. If you’ve checked the foundational boxes and you’re in one of these categories, go now. Private equity demand is strong. Field services—“truck and clipboard” businesses such as landscaping, pool cleaning, fire and water damage restoration, and some construction management—are also in demand. Private equity has been rolling these up for a while, and while it might be later innings, buyers are still interested. Other areas with strong demand include physician practices, differentiated small healthcare businesses, software (especially recurring-revenue SaaS models), MSPs like ServiceNow or NetSuite integrators, property management, parts of the pet sector, and infrastructure that aligns with major government projects. If you’ve checked all the boxes—performance, financial readiness, customer diversification, management depth, timing fit, and your personal “why” for selling—then it’s time to go. Short of that, there’s no rush. There is a tremendous amount of private equity capital raised and continuing to be raised. This demographic wave will likely last a decade or more. So don’t rush if the market is against you or sentiment is against you. If your recent results aren’t strong, there will be another time to sell your company. I can’t tell you when the next recession will happen, and a recession is a tough time to sell—even though deals still get done. But if you have a couple of years to wait and still have energy to keep building, then there’s no need to hurry. Stay tuned for more information—that’s a critical part of the funnel. Thanks for checking in. [End Transcript]