By Bill Anderson, Senior Valuation Advisor & RICS Associate, Assetica — 2024-09-20
Selling a business at the right time is essential for maximising success and profitability. Entrepreneurs must consider market conditions, financial performance, and sale preparation strategies.
The optimal time to sell a business in Dubai is when three conditions align: your business is performing at or near its earnings peak; market conditions are favourable with active buyers and competitive multiples; and you have had two to three years to prepare the business for sale by addressing value gaps and building a clean track record.
Dubai's M&A market is driven by regional consolidation activity, international buyer appetite, sovereign wealth fund deployment, and the availability of acquisition finance. In periods of strong economic growth and high oil revenues, EBITDA multiples in the UAE tend to be 10 to 20 per cent higher than in periods of market uncertainty. Timing your exit to coincide with a strong market cycle can add significant value to your final sale price.
How long does it take to sell a business in the UAE?
From the decision to sell to completion, most UAE business sales take six to eighteen months. Preparation and business readiness typically take three to six months. Finding a buyer, negotiating, completing due diligence, and finalising legal documentation takes a further three to twelve months depending on complexity.
Should I tell my employees I am selling the business?
Generally, it is advisable to keep a sale confidential until key terms are agreed. Premature disclosure can unsettle staff, alert competitors, and affect customer relationships. Assetica manages sale processes with strict confidentiality protocols throughout.