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1st Aug 2025 - By FIH
Why Q4 Planning Starts Now: Positioning Your Business for a Strategic Exit Before Year-End
As we enter the final stretch of 2025, business owners considering a sale should understand that Q4 is the most time-sensitive quarter in the M&A calendar. If your goal is to capitalize on favorable dealmaking conditions before year-end or early 2026, now is the time to move.
Here’s why Q4 preparation begins in August:
1. Buyers Move Fast, but Processes Still Take Time
Even in efficient deals, time-to-close can range from 60 to 120 days. That includes preparation, buyer outreach, NDAs, diligence, negotiations, and closing logistics. Starting now gives your team time to control the process instead of rushing it.
2. Strategic Buyers Budget for Growth in Q4
Corporate acquirers finalize their roadmaps and budget allocations before December. To be considered in that window, your business must be in front of decision-makers well before then — ideally by early fall. Waiting until Q4 often means missing the cycle altogether.
3. Financial Sponsors Need to Deploy Capital by Year-End
Private equity and family offices often operate under deployment mandates tied to calendar cycles. Many are still actively seeking quality deals that can be closed and onboarded before year-end — especially in categories like B2B SaaS, tech-enabled services, and profitable eCommerce.
4. Buy-Side Competition Is Highest Before Holiday Lull
As late November and December bring travel, budget freezes, and year-end reporting obligations, buyer responsiveness tends to decline. But before that, acquisition teams are working to fill their deal funnels and make progress while leadership is still fully engaged.
5. You Can Use the Time to Shape the Narrative
Even if you're not ready to fully market your company yet, Q3 is an ideal time to build your CIM, finalize your reporting, and prepare documentation — so when you're ready to move, the deal is clean, compelling, and professionally packaged.
Final Thought
Strong businesses are still commanding strong valuations. With strategic and financial acquirers actively looking for deals — and Q4 timelines already approaching — now is a smart time to start positioning your business.
