Selling a business can feel like a big mountain to climb, especially if you’re aiming to get the best possible return.
Some owners wait until the last minute before thinking about the preparation side, but by then, their options are limited.
A good sale usually starts long before the listing goes live – here are some of the areas worth thinking about early on.
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Prepare your documentation
All serious buyers will need to conduct their due diligence at some point. If your accounts are messy, outdated, or scattered across different systems, it’s an immediate red flag.
Ideally, you want clean, organised documents that show not just where the money is, but how it’s moving over time. Profit and loss statements, balance sheets, taxation records – these all need to be up to date and easy to understand.
If you’ve let this slide a little, that’s normal, but you’ll need to pull it together before you go to market. Working with a good accountant early can save you time and avoid ugly surprises when buyers start their due diligence.
Operational independence
The less reliant your company is on you personally, the easier it’ll be for a business broker like Dexterity Partners to sell it. Buyers aren’t just looking at the product or service; they’re trying to figure out how the business will run once you’re out of the picture.
Think about the systems you have in place. Can someone else step in and run operations without needing you on speed dial? Are your client relationships dependent on personal favours and handshakes, or are they structured properly? Small changes here can make a huge difference later on.
Even basic things, like clear documentation or having second-tier managers trained up, can shift the conversation during negotiations.
Carry out a thorough valuation
It’s easy to get caught up in ideas about what your business should be worth. You know the sacrifices you’ve made, the hours you’ve put in – but buyers are looking at hard numbers that they can see on spreadsheets, not sentimental value.
Get a professional valuation if you can, even if it costs a little upfront. A proper market assessment gives you something solid to work with. It also makes it easier to spot weak points that you can still strengthen before going to market.
Sometimes, relatively minor improvements – locking in a few key contracts, reducing debt – can have a considerable impact on the sale price.
Detach from your business early on
Most owners underestimate how attached they are until the offers start coming in. Selling isn’t just a transaction, it can come with a complete shift in identity, and it’s important to expect these changes as well.
Taking time to mentally separate yourself from the business can also help you negotiate more clearly. You’re not just selling a revenue stream; you’re handing over something you built, and being ready for that makes the whole process a lot easier to handle.
By taking these initial preparation stages seriously, you can make your business sale a whole lot smoother. It’s worth putting in some effort early on, to reap the benefits further down the line.