Let’s face it — not every founder gets to exit at the top.
You blink, and the peak is in the rearview mirror. The market softens. Buyers pull back. Valuations dip. And that perfect deal you were counting on? Gone.
At Legacy Advisors, we’ve worked with dozens of founders who thought they were ready to sell — only to find out they were late to the party. But here’s the truth:
Missing the peak doesn’t mean you’ve missed your shot.
It means it’s time to get strategic — to reposition, recalibrate, and rebuild leverage.
In this article, I’ll walk you through exactly what to do if you’ve missed the ideal window, including:
- How to reassess your exit plan
- Ways to increase value in a down market
- Creative options beyond a traditional exit
- And how to prepare now for the next wave
Let’s get into it.
Recognize the Signs You Missed the Peak
First, don’t beat yourself up — but do get honest.
Here are common indicators you’ve missed the market peak:
- Buyer inbound interest has slowed
- PE firms are re-trading or offering more structure
- Valuation multiples in your sector have dropped 20–40%
- Strategic acquirers are pulling back on M&A spend
- Banks are tightening lending, slowing deal velocity
- You’re hearing “great company, wrong timing” from buyers
Sound familiar? You’re not alone.
Even great companies — with strong teams and product-market fit — get caught on the wrong side of the curve.
What NOT to Do
Before we talk strategy, here’s what you should not do:
- Panic sell
- Slash prices to attract a buyer
- Launch a rushed, unfocused M&A process
- Go radio silent and hope the market bounces back next quarter
- Take on misaligned capital just to survive
Desperation is obvious — and buyers smell it from miles away.
Instead, take a breath. Then take control.
Step One: Reassess Your Position
Start by evaluating your business through a fresh lens:
- Financial health: Are your margins and cash flow stable?
- Growth rate: Can you maintain or improve YoY performance?
- Team depth: Is the company founder-reliant or scalable?
- Customer concentration: Any dependencies that make buyers nervous?
- Balance sheet: Clean and optimized or tangled and bloated?
- Differentiation: What makes you strategic — even in a down market?
This exercise helps you separate what’s fixable from what’s foundational.
Step Two: Stabilize and Strengthen Core Metrics
Once you know where you stand, prioritize these value levers:
Margin Expansion
Buyers reward profitability — especially in down markets. Revisit your:
- Pricing model
- COGS and vendor contracts
- Team efficiency
- Software and tool stack
- Customer success cost centers
Small margin improvements now can translate to major valuation gains later.
Recurring Revenue
Non-recurring businesses get hit hardest when the market dips. Ask:
- Can I package services into monthly retainers or subscriptions?
- Can I productize a high-margin offering?
- Can I bundle upsells or cross-sells?
Buyers crave predictability — give it to them.
Forecast Accuracy
Refine your forecasting discipline. Buyers who see variance between forecast and actuals start discounting fast. Prove you’re a founder who knows their numbers and can plan with precision.
Remove Red Flags
From cap table clutter to personal loans on the balance sheet — now is the time to clean house.
Step Three: Reframe the Narrative
Just because the market dipped doesn’t mean you stop telling your story.
But now, the story must shift.
Instead of:
“We’re selling because everything’s perfect.”
Try:
“We’ve built a recession-resilient business with expanding margins, loyal customers, and a clear path to profitability. We’re not in a rush — but we’re open to conversations with the right partner.”
That posture attracts smart buyers. It shows discipline, not desperation.
Step Four: Consider Creative Alternatives
Even if a traditional exit isn’t viable now, you still have options.
Strategic Partnerships
As Kris Jones shares in The Entrepreneur’s Exit Playbook, his deal with GSI Commerce began as a strategic integration opportunity — not an M&A conversation.
Start there:
- Can you become a preferred vendor or reseller for a larger player?
- Can you co-build a product with a potential acquirer?
- Can you land a “try before you buy” pilot project?
These relationships often evolve into deals when timing improves.
Partial Recaps
Maybe you don’t sell 100% — maybe you take some chips off the table. Consider:
- Growth equity from a minority investor
- Debt recapitalization
- Management buyouts
- PE partnerships with structured liquidity events
These options provide liquidity, extend runway, and prep you for a future exit when valuations rebound.
Roll-ups or Acquisitions
In some cases, you become the acquirer. If smaller competitors are hurting, now might be the time to scoop up market share and build a platform business — one that commands a bigger valuation later.
Step Five: Build Your M&A Playbook Anyway
Just because you’re not going to market now doesn’t mean you stop preparing.
Use this time to:
- Create your data room
- Conduct internal quality of earnings (QofE)
- Develop your management presentations
- Finalize your 3-year forecast
- Clean your balance sheet
- Tighten contracts and IP ownership
- Benchmark your sector
Deals reward the ready. The next wave will come — be first in line.
Podcast Insight: The Post-Peak Playbook
In Episode 8 of the Legacy Advisors Podcast (listen here), I talked about how we helped a founder go from “missed window” to “multiple offers” by focusing on operational optimization and buyer posture.
The key?
“Don’t wait for the market to be great. Make your business so strong that it’s attractive regardless of the cycle.”
A Case Study: Turning Missed Timing Into Premium Positioning
We worked with a SaaS company in 2022 that missed the high-multiple window by 3 months.
They paused their sale process. Then, we helped them:
- Expand gross margins by 5%
- Rework their sales comp model
- Rebrand and reposition for a different buyer persona
- Eliminate 2 toxic clients that skewed churn metrics
- Launch a new pricing strategy
12 months later, they re-entered the market — and closed at a multiple higher than they’d hoped for originally.
Why? Because they didn’t panic.
They positioned.
What We Teach in The Entrepreneur’s Exit Playbook
If you’ve missed the peak, this is your time to double down on the tactics we outline in the book (available here):
- Financial storytelling
- Strategic buyer targeting
- Leadership bench strength
- Capital structure optimization
- Exit modeling and scenario planning
Your next exit window won’t just arrive. You have to engineer it — and we show you how.
Final Thoughts
Missing the market peak is frustrating. But it’s not fatal.
You still have options. You still have leverage. And you still have time to make your business better, smarter, and more attractive to the next wave of buyers.
Here’s what to remember:
- Don’t sell because you’re tired — sell because you’re positioned
- Down markets reward discipline
- Great companies are built — then bought
- Strategic prep is never wasted effort
So don’t stall. Rebuild momentum. Start the prep. Tell a better story.
And when the market comes back?
You’ll be ready — and the buyers will be too.
Frequently Asked Questions About What to Do if You Miss the Peak of the Market
How do I know if I’ve missed the ideal window to sell my business?
There are several clear signs: inbound interest from buyers slows down, you receive lower valuations than you expected, deal structure becomes more complex (earnouts, escrows, seller notes), and sector-wide M&A activity contracts. If you hear comments like “we’re waiting for the market to stabilize” or “we love the company but not the timing,” that’s your cue. As Ed Button, Jr. explains, timing isn’t just about market highs — it’s about buyer confidence. When buyers pull back or become overly cautious, you’re likely operating outside the optimal window.
Should I still try to sell even if the market has softened?
Not necessarily. If your business fundamentals are strong — consistent EBITDA, clean financials, clear growth narrative — you might still command a solid deal. However, you’ll face more pressure on structure (less upfront cash, more contingencies). If you’re only considering a sale because of burnout or external pressure, it might be smarter to delay, regroup, and build for the next wave. In The Entrepreneur’s Exit Playbook, we emphasize that founders should not sell just because the market has dipped — instead, they should get sharper, not desperate.
What should I focus on operationally after missing the market peak?
Focus on value drivers that create resiliency and attractiveness no matter the market:
- Expand gross and EBITDA margins
- Increase forecast accuracy
- Shift revenue toward recurring or contract-based models
- Clean up your cap table and financials
- Reduce customer concentration
- De-risk founder dependency by building a leadership bench
These actions help position your company not just for a better future exit — but for more inbound opportunities along the way. As Ed advises clients, your M&A readiness shouldn’t be cyclical. It should be systemic.
Are there alternative options if I can’t sell my company right now?
Yes. Strategic partnerships, partial liquidity (recaps), growth equity, or even tuck-in acquisitions can help you stay in the game without selling everything. Ed often recommends using this slower market phase to create more leverage — build strategic alliances, launch new verticals, or position your company as a future platform acquisition target. Sometimes the best moves aren’t sales — they’re setups. The Legacy Advisors Podcast and book outline these alternatives and how to approach them without signaling weakness to the market.
How can I use this time to prepare for the next M&A wave?
Start by conducting an internal exit readiness audit: QofE-style reviews, KPI dashboards, forecast validation, legal cleanup, and buyer persona analysis. Then begin quietly building your M&A story — pitch decks, CIM drafts, and financial narratives. Establish discipline in your forecasting, team operations, and capital management. Document processes, codify your culture, and fix any red flags. As Ed says in Episode 8 of the podcast, “Founders who miss the peak but prepare anyway are first in line when the next window opens — and they close fast.”