After overseeing more than 500 transactions and interviewing thousands of business buyers, we have found that there are key areas that affect whether a business sells or not and the ultimate value that it receives. All the factors focus on two main goals: increase the quantity of the business (earnings) or improve the quality of the business. This is great news for business owners because it means that while you are preparing to sell the business you are also improving the company for your benefit. At the end of the day, preparing for sale really means creating time, profit, and choice for the owners’ benefit. Whether you decide to sell now, plan to sell in the future, or see the business legacy carried on by employees or the next generation: you will benefit now by having a preparation plan in place that maximizes your earnings and minimizes your efforts in the business.

Free Checklist for Preparing to Sell Your Business 

Here is the checklist to prepare your business for sale and receive top value:

  1. Reduce the owner’s involvement in the business
  2. Obtain consistent profitability for at least three years
  3. Eliminate all deal killers: legal issues, tax issues, regulation issues
  4. Maintain clean books and records for a minimum of three years
  5. Maximize the reputation of the business both on and off line with all key stakeholders
  6. Build a consistently growing business (at least 20% per year)
  7. Institute processes and systems that can ensure a clean handoff from one owner to the next
  8. Diversify your product and service offerings
  9. Ensure that you serve many clients vs just a few
  10. “Stage” the business, make sure its presentable for sale both on location and online

Learn More about Exit Planning: 

(Beginner) | Download our PDF Report: What Makes a Business Sellable

(Advanced) | Register for the program: Prep to Sell is the ultimate blueprint to building a profitable, efficient and sellable business