Should I sell during a strong year or wait until things settle?

A strong year feels like the moment to sell, and some owners wait for a calm one instead. Deavo cannot tell you which is right for your business, and none of the sources cited here names either as the answer. What they do show is how buyers read a year’s results and what else moves a sale, which are the things worth weighing.

What buyers examine

BDC says buyers want to understand your financial performance to see whether the business has a solid track record that will continue. They ask for historic and interim financial statements, projections and tax returns, and they want to see past profits and solid growth prospects. A single strong year is therefore read inside a longer record, alongside the months since your last year-end.

Why the year you start is not the year buyers see

BDC also notes that many owners underestimate how long it takes to prepare a business for sale, especially when there are issues to address in the company. A sale begun in a strong year may be judged on interim figures from a different one, so the numbers a buyer weighs may differ from the ones that made you want to sell.

What else moves the price

BDC lists several factors that can affect the final price: market conditions, the buyer’s strategic interests, due diligence, availability of financing, your eagerness to sell and your involvement after the sale. It also names favourable market conditions among the reasons owners choose to cash out. Some of these factors may sit outside your control, so ask your advisors how much weight each should carry in your timing.

Tax rules can change before closing

Tax rules can change between the day you decide and the day you close. The CRA’s page on the capital gains deduction lists different maximum amounts for different periods, and CFIB records a proposed change to capital gains taxation that was announced, delayed and then cancelled. Ask your accountant what applies to a sale closing on the dates you are considering.