Private equity firms have been exiting investments at record rates. But figuring out when to sell a company is no easy decision.

There is always more that can be done to make a company more attractive for sale - opening new shops or making a hotshot hire. But hold on to a company too long and the market may turn down, leaving the buyout firm with an unsaleable asset. Because of dilemmas like this private equity firms are getting savvier and putting in place more formal processes for how they manage exits and are now reviewing their exit plans earlier than ever.