"Believe it or not, it was just after the pandemic. In June 2024, the U.S. Department of the Treasury reported that American business investment had exceeded expectations, outperforming pre-pandemic projections by $430 billion. "The outlook for future business investment growth is encouraging," the report stated. "Firms are observing persistently high returns to their capital, and founders are starting new businesses at historic rates." Across industries, 2020-2022 outperformed even 2019 in many metrics."
"You don't sell based on headlines. You sell based on your business, your industry, and your momentum. Company valuations have stayed remarkably consistent over the past 25 to 30 years - even during recessions like 2008-2009. Waiting for the "perfect" economic moment to exit is a common mistake that often leads to missed opportunities. One of our software clients was nearly ready to sell last year. But their industry began heating up so fast, we advised them to hold off."
American business investment exceeded pre-pandemic projections by $430 billion in June 2024, indicating strong post-pandemic momentum. Firms experienced persistently high returns on capital and elevated rates of new business formation between 2020 and 2022, with sectors like manufacturing registering notable gains. Business exit decisions should be driven by company-specific performance, industry trends, and momentum instead of headline-driven market timing. Company valuations have remained broadly consistent over the past 25–30 years, including during major recessions. Practical examples show that acting with industry acceleration can boost valuation, while waiting amid declining demand can close exit windows and reduce leverage.
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