8 Critical Steps to Prepare a Business for Sale

business owner running up steps

Preparation and planning are critical when selling a business. Business owners who have been strategically preparing to sell a business years in advance will almost always have a better outcome. Set yourself up for a successful sale by following VR Business Brokers of Charlotte’s 8 Critical Steps to Prepare a Business for Sale.

How to Prepare a Business for Sale

Ready to begin planning for your future? Use the following eight steps to prepare a business for sale like an expert.

  1. Meet with your accountant and financial advisor to plan accordingly for retirement and tax implications on the sale and gain an understanding of your financial future. (Note: I am amazed at how few people do this.)
  2.  Make sure your spouse/partner/shareholders are all aligned and in agreement on timing.
  3. Work to make sure your financial records are in excellent shape and ready for 3rd party review.
  4. Get a third party valuation of the business BEFORE you go to market to make sure the number in your head is realistic. (Hint: It usually is not.)
  5. Develop strategies to make sure your customer concentration is not too great with your top customer as well as your top 5 customers.
  6. Ensure that your company is not too reliant on a key employee, vendor, or agreement.
  7. Work tirelessly to make sure the business is less owner dependent every day.
  8. Think like a buyer, look at your business critically, and then make the appropriate adjustments while you still own the business.

At VR Business Brokers of Charlotte, we view ourselves as advisors and educators to those looking to prepare a business for sale. There is a lot of misinformation and opportunities for education, and with that in mind, we encourage you to reach out to our team of professionals for guidance. We have years of experience helping business owners value their businesses and find a qualified buyer. To begin preparing your Charlotte-based business for sale, please contact VR Business Brokers.

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