Selling a business isn’t something that should be done on a whim or even within a few months. In fact, most experts recommend starting your exit planning three to five years before you actually intend to sell. Why? Because maximizing the value of your business, preparing your financials, and ensuring a smooth transition takes time, strategy, and the right team.
Too often, business owners wait until they’re burned out, facing a health issue, or responding to an unsolicited offer. But the best outcomes come from proactive planning, not reactive decisions.
If selling your business is even on the horizon, here are the key things you should start thinking about now to set yourself up for success.
Before you even think about listing your business, take a step back and ask yourself: What do I want from this sale?
Understanding your personal and professional goals will shape every decision you make throughout the process.
Many owners have a rough idea of what their business is worth, but a professional valuation can reveal a very different picture. A valuation considers:
Knowing your true market value helps you set realistic expectations and negotiate from a position of strength.
Buyers want transparency and accuracy. That means:
If possible, consider having your financials reviewed or audited by a CPA. It builds credibility and speeds up due diligence.
A business that runs smoothly without the owner is far more attractive to buyers. To prepare:
Reducing owner dependency increases both value and buyer confidence.
Not all buyers are created equal. You might encounter:
Each type has different motivations, timelines, and deal structures. Knowing who you’re targeting helps tailor your pitch and expectations.
Due diligence is like a business health check, and it can be intense. Buyers will examine:
Being organized and transparent reduces friction and builds trust.
The structure of your deal can have major tax implications. For example:
Work with a tax advisor early to structure the deal in a way that minimizes your tax burden.
Selling a business is complex. Surround yourself with experienced professionals:
A strong team can make or break your outcome.
What’s next for you? Retirement? A new venture? Philanthropy?
Many owners underestimate the emotional impact of selling. Having a clear post-sale plan can help ease the transition and give you something to look forward to.
Finally, consider the timing. Is your industry growing? Are interest rates favorable? Is your business trending upward?
Trying to time the market perfectly is tough, but selling during a strong performance period can significantly boost your valuation.
Selling your business is a journey, not a transaction. The more prepared you are, the better the outcome for you, your employees, and your legacy.
If you’re thinking about selling, please reach out to our team so we can help you start planning now. The earlier you begin, the more options you’ll have when the time is right.
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