> ## Content Index > Fetch the complete content index at: https://blog.sellingyourcanadianbusiness.com/llms.txt > Use this file to discover other available public pages before exploring further. # How do you sell a business when rates are rising? - URL: https://blog.sellingyourcanadianbusiness.com/how-do-you-sell-a-business-when-rates-are-rising/ - Published: 2022-10-02T13:05:35.000Z - Updated: 2026-08-14T19:13:40.000Z - Description: As rising rates tighten buyer financing and pressure valuation, the signals that argue for selling now against the signals that argue for holding through the cycle. - Author: Karl E. Sigerist, Jr., ICD.D - Tags: Articles Sell-Side, #review-excerpt-missing-2026-08-14 Should you sell your business when facing rising interest rates? Timing matters, and selling early in a business cycle can be critical. When interest rates climb, borrowing costs rise and buyer financing tightens, pressuring both your operations and your valuation. Selling may seem like a bad idea, but it is not always the worst option — because some businesses lose value or do not survive higher-rate environments, owners can sometimes earn their best return by selling. The decision comes down to your business, your industry and your niche. When does selling make sense? \- Rising sales — a business with growing sales is more appealing to buyers; affordable, low-priced goods often stay popular as buyers seek bargains \- Essential goods and services — necessity businesses feel minor impact and sell in any environment \- Falling sales — selling can still be the best return, preventing losses from accruing as rate pressures encroach \- Already planning to exit — if you were ready to sell, it is usually best to proceed as planned When should you hold? \- When fear is driving the decision — rising rates do not guarantee a drop in sales or value, so don't let fear dictate the sale \- When you are still enthusiastic — it can be worth working through tough times for long-term success \- When growth is possible — with capital or access to capital, you can acquire smaller adjacent or rival businesses What should you consider before selling? \- Culture and people — recruit, retain and build a strong management team to widen your buyer audience \- Independent business valuation — understand both the asset-based approach and the market approach \- Accurate, timely data — rolling last-twelve-months and the previous three fiscal years \- Competitive advantages — organize and highlight strengths rivals cannot easily replicate Key facts: selling amid rising interest rates Sell when: sales are rising, your products are essential, or you were already planning to exit Falling sales under rate pressure can still justify a sale by preventing further losses Hold when: the decision is fear-driven, you are still passionate, or you can grow through acquisition Before selling: build a strong management team, get an independent valuation, and prepare accurate LTM and three-year data If this content was useful, the rest of the Selling Your Canadian Business library is one click away. Visit [www.sellingyourcanadianbusiness.ca](https://sellingyourcanadianbusiness.ca/?ref=blog.sellingyourcanadianbusiness.com) for a monthly newsletter, audio podcast, and video interviews with Canadian advisors. Subscribe now to The Canadian Exit Briefing for exclusive articles, guides and reports written for Canadian business owners and their advisors. Pass this article along to another owner who is working through the same questions. Disclaimer: This article is for general informational purposes only and does not constitute legal, tax or financial advice. Consult qualified advisors regarding your specific circumstances.