There are many factors that determine best timing for selling a small business: the financial condition of the company, valuation, growth cycle, profit history and the current market.
Usually, the best time to obtain the highest price occurs when sales and earnings are good and trending upward. A solid earnings trend will enable a buyer to pay a higher price and still meet his/her return on investment criteria. A history of good performance also gives the buyer confidence in projected future earnings.
Value is dynamic and proper timing makes a big difference in the prices paid for business acquisitions. External factors such as the economy, industry trends, competition, stock market volatility, investor confidence, interest rates and geopolitical considerations are cycles of constant change that impact value.
Internal conditions within a company also change. Often in combination with external factors and sometimes independent of those factors. Changes do, and will, occur and they always tend to impact business value -- sometimes eroding value and sometimes increasing value.