by Brian Aagaard, Founder of Cooperhawk Business Brokers
Selling a small business is never easy. Statistics show that 70 to 80 percent of small businesses never find a buyer. And today’s market is particularly challenging, as a growing number of Baby Boomers business owners looking to retire are adding to the inventory every day.
Consequently, business owners need to be strategic. The following are some key factors that should be carefully considered if you hope to find a buyer for your small business in 2026.
Make sure you are selling for the right reasons.
Many business owners start thinking about selling for the wrong reasons, often tied to frustration with short-term problems. For example:
- A bad quarter or year can make you feel like selling is the only way to avoid big losses.
- Losing a few contracts or clients can make you feel like the model is failing.
- Team problems, whether with employees or partners, can leave you exhausted and thinking that selling would be the easiest way to handle the drama.
- For whatever reason, you feel burned out, which is a state that can cloud anyone’s judgment.
Selling for any of these reasons will typically make the process harder and result in a lower sale price. The better move is to step back, clear the head, and regroup.
The challenges listed above, which can feel daunting, can usually be addressed by bringing in new business or making smart adjustments. And if you are really set on selling, slowing down, refocusing, and getting back to the basics will put you in a stronger position and make the business more attractive to a potential buyer.
Know the signs that you’re ready to sell.
Strong financial and operational health are definitely top signs that a business is ready to sell. Finding a buyer who will pay top price will be much easier when revenue is solid, cash flow is healthy, and the team is in place, especially when the business has been steadily operating at that level for a while.
Once business health is established, it’s easier to move effectively when other signs that indicate it may be time to sell begin to surface. For example, a good time to think about selling is when the business has peaked. You have put in the blood, sweat, and long hours needed to make the business successful, and there is not much left to squeeze out. It may make sense at that point to look for a new owner who can step in and take it to the next level.
A shift in priorities that makes the excitement about business start to fade is another clear sign it’s time to sell. You’ll know you’ve arrived at this stage when the idea of growing the team, expanding the business, or implementing new technology starts to feel more stressful than motivating.
For many owners, selling is really about getting time back. By passing the baton, you get more time with family, time for your health, and time to do the things you set aside while building the business. Deciding it’s time to step back and enjoy the fruit of your labor is not a bad reason to sell.
Engage your professional team early.
You should reach out to your professional team as soon as possible once you start seeing signs that it’s a good time to sell. Starting the conversation early with your CPA, financial advisor, attorney, and a business broker or advisor will ensure you don’t overlook key issues that could hinder a sale.
For example, a strong support team can be especially helpful in ensuring your financials are cleaned up. Prospective buyers lose confidence quickly if the numbers aren’t clean, the documentation isn’t organized, or the seller can’t clearly explain the business and/or financials. Lenders who aren’t impressed by financials will walk and, in most cases, tell the buyer to walk, too.
Proactively organizing key business factors enhances attractiveness to buyers and streamlines the transaction process. Leaning on the expertise of professionals helps you to command a premium for what you have worked so hard to build.
For 2026, experts expect to see solid sales activity across several types of businesses, including personal and home health services, professional home services and trade businesses, and technology-enabled companies focused on AI, software, and IT services. At the end of the day, however, buyers will be attracted to businesses that offer room to grow and can be taken over and run without much disruption. You’ll be in a good position to attract a buyer if you can clearly demonstrate steady and reliable cash flow, that good processes and technology are in place, and that operations don’t rely too heavily on the owner.
Brian Aagaard, Founder of Cooperhawk Business Brokers, is a seasoned professional with decades of experience across both corporate and privately held companies. After a long and successful career in the corporate and private sector world and having spent the last 10 years with one of Minnesota’s leading business brokerages, Brian launched Cooperhawk to bring a personal, relationship-driven approach to business brokerage.
