5 Signs You’re Ready to Sell Your Business
With the holidays approaching, now is a great time to reflect on the past year and assess the health of your business—and your mindset. Many owners think about selling long before they actually prepare for it. If you’ve wondered whether 2026 might be the year to exit, these signs can help you determine if you’re truly ready.
Below are five clear indicators you’re ready to sell your business.
1. Your Business Is Consistently Profitable
If your business has delivered strong profits over the last three to five years, you’re already in a favorable position to sell. Buyers look for:
- A reliable management team
- Diversified customers and vendors
- A healthy pipeline of future business
- An operation that does not depend heavily on the owner
When these factors align, businesses tend to sell faster and command premium valuations.
2. You’re Feeling Burned Out
Burnout is one of the most common—and often overlooked—reasons owners decide to sell. What used to energize you now feels like a grind. Challenges you once handled with ease—such as employee issues or operational hurdles—now feel draining.
When your enthusiasm fades, the risks of business ownership increase. If your passion has shifted and the joy is gone, it may be time to consider an exit.
3. You’re Mentally Prepared for the Selling Process
Selling a business isn’t a quick transaction—it’s a structured process that takes 6–12 months on average. You’re ready to sell when:
- You understand you may meet with 5–25 buyers
- You’re prepared to answer extensive due diligence questions
- You accept that even with a signed LOI (Letter of Intent), deals fall apart roughly half the time
If you’re prepared for the ups and downs—and committed to seeing the process through—you’re in a strong position to begin your exit.
4. You’ve Built the Right Team of Advisors
Successful exits don’t happen solo. You’re ready to sell when your advisory team is in place, including:
Your CPA
Inform your CPA early—ideally two to three years in advance—so they can help you navigate tax strategies tied to your exit.
Exit Planner
An experienced exit planner can help you structure your transition and maximize post-sale outcomes.
M&A Advisor
Meet with an M&A advisor at least three years before you plan to sell. A formal valuation will ensure your expectations align with the market—removing one of the biggest obstacles to closing a deal.
M&A Attorney
This is critical. Time kills deals, and an attorney without transaction experience can slow the process
5. You’ve Spent Time Planning Your Next Chapter
Many owners focus so much on the sale that they overlook what comes after. If you’ve started imagining your next phase—whether it’s more time with family, travel, new ventures, or charitable work—that’s a strong sign you’re emotionally ready to move on.
Being intentional about your post-sale life helps make the transition smoother and more fulfilling.
In Conclusion
There’s never a “perfect” time to sell a business. The process often spans months—and sometimes years—and unexpected changes can shift the landscape. But if your business is consistently profitable, you’re experiencing burnout, you’re mentally prepared for the selling journey, your advisory team is in place, and you’ve thought about your next chapter, you’re showing the five signs that you’re ready to sell your business.

This article was written by Sam Thompson, CBI, M&AMI. Sam is the president and founder of Transitions In Business, a Twin Cities based M&A firm that specializes in selling business to business and healthcare, transportation, manufacturing, distribution and construction/trade services companies. Sam is a Merger and Acquisition Master Intermediary (M&AMI) and a Certified Business Intermediary (CBI) who has successfully guided countless business owners through the sale or merger of their company. Prior to becoming a business broker, Sam was a successful CEO and business owner for 29 years before selling his $16 million conference and event management company. If you have questions about this article and would like to connect with Sam click on the link below.

