When boards evaluate a company’s future, they should consider selling alongside scaling, pivoting, or staying independent, especially when the business is thriving, founder priorities shift, or strategic buyers show interest. The first signal is often counterintuitive: when everything is going exceptionally well—revenue growing rapidly, customers happy, retention strong, and leadership excited about the future—commands the highest valuations; strategic acquirers pay premiums for momentum. For example, a founder of a cybersecurity firm that had raised roughly $30 million noted his board only thought about a sale when things went south, missing the chance to act from a position of maximum strength.

The second signal emerges when the founder begins losing energy; after a decade or more of building, founder fatigue can change personal objectives, and boards should discuss options like a CEO transition or secondary transaction before performance suffers. The third signal occurs when buyers begin calling; repeated inbound interest from strategic buyers reveals a valuable market position that management may overlook, and listening to their rationale helps assess options. Waiting until growth slows, cash tightens, or competitors appear stronger often yields weaker outcomes, as acquirers gain leverage.

The best time to have the conversation is before circumstances force it, allowing the board to avoid inertia and choose the path that creates most value for shareholders. — Itay Sagie, strategic adviser to tech companies, investors, CEOs and boards.