Determine Your Overall Objectives
Spending time to understand all aspects of your objectives will help prioritize your goals and develop an expectation of value.
Financial
What value do you want to achieve. How do you want to manage and allocate your proceeds from the sale.
Legacy
Is there a legacy that you want to maintain. how do you want to achieve that.
Employees
How to handle communication to employees. Any key employees to protect through the sale of the business
Brand
Any Brand requirements. Brand Value. Community impact.
Your Story
Create a selling memorandum that provides the history of your business, its origin, growth and future outlook.
Timing
Understand your level of motivation to sell.
Financial Reporting
It is important to provide financial information with the highest level of confidence from audited to management prepared.
Financials
Provide 3 – 5 years historical financial statements, year-to-date profit and loss, and balance sheet
Tax Return
3 – 5 years tax returns
Aging A/R
Aging accounts receivable
Inventory
List of inventory and value
FF&E
Furniture, Fixture and Equipment list and value. Book Value vs Market Value
Discretionary Expenses
Detailed list of expenses that are for the Benefit of the owner.
Why Preparation Matters
A business transition plan is one of the most important factors, outside of financial performance for a Buyer.
Phase Out of day-to-day Business
The ideal scenario when putting your business on the market, is when you no longer have your hands in any part of the day to day operations.
Consulting Agreement
Will you agree to stay on for a specific time period. For how long and for what price.
Management
Will your key managers stay in the business or will any need to be replaced. What is the cost associated. Keeping managers in place is most often more desirable to a Buyer.
Family Dynamics
Any relatives in the business. Does this impact the structure of a purchase agreement.
Why Preparation Matters
The decisions made before going to market directly impact your sale price, timeline, and how smoothly the deal closes.
Getting Your Financials in Order
Have three to five years of tax returns, year-to-date profit and loss statements, and a current balance sheet ready to share under NDA. Clean, consistent financials build buyer confidence and reduce due diligence friction.
Reducing Owner Dependency
A business that cannot run without its owner is harder to sell and commands a lower valuation. Document your processes, cross-train staff, and demonstrate the business can operate independently before going to market.
Timing Your Exit
The best time to sell is when your business is performing well — not when revenue is declining or you are burned out.
Revenue Trajectory
Buyers pay for momentum. Three years of consistent or growing profitability puts you in the strongest possible negotiating position.
Start Earlier Than You Think
Most sellers wish they had started preparing 12 to 24 months earlier. Blue Ridge Brokerage can help you identify what steps are worth taking now to maximize value before you list.
Ready to Start Preparing?
Contact Blue Ridge Brokerage for a confidential consultation at no cost.