August 1, 2024

When is the Best Time to Sell my Business?

Matt Stevenson

Managing Director


Thinking about selling your business? Remember that timing is everything!

At Bizstats, we prefer a data-driven approach to business decisions, and we’ve recently put conventional wisdom to the test. An article we came across suggested that the start of the financial year, typically April in New Zealand, is the best time to sell a business. However, our research tells a different story.

The Data Says Otherwise

The chart below shows the median Seller’s Discretionary Earnings (SDE) multiple by month over the last 10 years. The data clearly indicates that the best time to sell your business is from September to November.

Why might this be the optimal period?

  • Increased Economic Activity: As businesses prepare for the holiday season, there is generally a surge in economic activity.
  • Seasonal Economic Optimism: Business sentiment tends to be more positive as the end of the year approaches, contributing to more favorable selling conditions.
  • Execution of Acquisition Strategies: There is often a time lag between the start of the financial year and the execution of acquisition strategies, aligning perfectly with this optimal selling period.

At Bizstats, we are committed to providing you with the data and insights needed to make informed business decisions. Whether you’re considering selling your business or looking to understand market trends, our comprehensive data and expert analysis are here to support you.

For more insights and data-driven decisions, visit bizstats.co.nz.

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