Selling a Business: Five Tips to Get Started 


Selling a business is a major decision that requires careful planning, strategic execution, and expert guidance. Whether you’re ready to retire, exploring new opportunities, or simply looking to capitalize on your hard work, the process of selling a business can be complex and overwhelming. In this post, we will share five essential tips to help you get started on the right path towards a successful business sale.

  1. Prepare Your Financial Documentation:

Before listing your business for sale, it’s crucial to ensure that your financial records are accurate, up-to-date, and well-organized. Ideally the Financial reports are on a “Review Engagement” minimum basis. Good financial reporting that is trusted by the acquiring party and that will pass quality of earnings scrutiny is key. Such may also help to justify a price expected of a buyer and assure you don’t leave money on the table by way of an ambiguous required working capital.

  1. Conduct a meaningful Business Valuation:

Determining the true economic value of your business is key before any thought is given to exposing the company to the open market. Such will determine if this is a good time to go to market, if your expectations will be met by selling, what other alternatives are there that will ensure the time is right and your and your family’s financial needs are met. Additionally, there are many times of valuations. Ensuring the valuation purpose is clear, combined with an experienced business valuation professional that understands the market, the value drivers and not just the numbers, industry trends, and who the most likely buyer category would be are all key to a meaningful valuation.

  1. Maximize Earnings:

Focus on a clean bottom line and aside from good and effective legal tax mechanisms, ensure that you maximize every dollar that goes to the bottom line, and that any tax or other diversions is well documented and evidencable with full clarity and transparency. The earnings of a business is the foundation or basis of the business value that once exposed to the myriad of value drivers can drive the price in either direction. So making sure you have a strong earnings base and upward value drivers, will get you maximum value.

  1. Maintain Confidentiality and Focus on Performance:

Confidentiality is key and though there is often a desire to disclose the idea to those around you, it is always best and wiser not to so as not to jeopardize the business or afford an advantage to your competitors.

While preparing the stage for such performance, your undivided attention and focus on the performance of the business is essential. It must not skip a beat. Upward performance will always gain maximum saleability. Flat is acceptable but is no value enhancer.

  1. Create or support a Key Management Team.

Making yourself disposable is one of the highest value drivers. Ok to be the captain, but don’t be the skipper who also wears the captain’s hat. Get a good team of key management in place with Key Performance Indicators and where your focus is on strategy, and growth, rather than day to day operations and micro management. This is one of the most valuable drivers of saleability and value to any synergistic, strategic or financial buyer.


Selling a business can be a complex, significant, and time-consuming process, which is why it’s highly recommended to seek professional guidance who can successfully guide you through the process maze. With the right approach and guidance, you can achieve a successful outcome and especially if you follow these five essential tips to get started on the right path.

Contact us to schedule a free, confidential, no-obligation discussion: [email protected] or 1.604.696.6111

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