If you’re a business owner, chances are you’ve poured decades of work into building something meaningful. But when it comes time to exit, many owners rush the process, miss critical steps, and walk away leaving money on the table. This post will walk you through what smart business owners are doing 12–36 months before they sell—and why it could add six to seven figures to your final deal.
Let’s break down the full exit planning process, from readiness assessment to buyer negotiations, using real insights from over a decade of M&A advisory experience.
Most deals don’t fall apart at the start—they collapse in the final stages.
Common last-minute deal-breakers include:
Disagreements over working capital
Financials that can’t be verified
Owners not being ready to walk away
Lack of a strong management team
Misalignment on valuation or terms
These issues are avoidable—but only if addressed years, not weeks, before the transaction.
Successful business exits follow a predictable structure. Skipping one step increases the risk of a failed deal or undervaluation.
Start by reviewing your company’s financial health, team structure, and market position. Are your books clean? Are you still involved in every decision? Can your company run without you?
Focus on what adds tangible value to buyers:
Clean financial statements
Documented SOPs
Strong management team
Customer diversification
Scalable operations
Understand your ideal buyer. Are you looking to sell to a strategic competitor, a private equity group, or a key employee? Your buyer profile determines your valuation expectations and marketing approach.
The final phase involves due diligence, legal negotiation, and smooth operational handoff. With proper planning, your employees stay secure, your customers stay loyal, and your business stays strong post-sale.
One of the most impactful changes you can make before selling is cleaning up your financials.
Buyers immediately discount businesses with:
Commingled personal expenses
Outdated accounting practices
Inconsistent or undocumented revenue
By investing in a bookkeeper or fractional CFO to prepare accurate, GAAP-compliant financials, many sellers raise their valuations by 10–30%—often adding hundreds of thousands to the final sale price.
You may run the business—but if it can’t run without you, it won’t sell.
Buyers want to see a competent management team already in place. That means:
A clear org chart
Defined leadership roles (operations, sales, delivery)
Employees who are trained, retained, and trusted
A strong team reduces risk for the buyer and increases your negotiating leverage.
Historical earnings matter—but growth potential drives valuation. When buyers ask, “Where is this business headed?” you need real answers. Be ready to show:
Revenue projections for the next 12–36 months
Specific growth initiatives (new services, markets, or products)
How your team will execute those initiatives
Empty growth promises are easy to spot. Be prepared to back up your plan with operational details and market data.
Owners who wait until due diligence to start planning make critical mistakes:
Trying to clean up books under pressure
Overvaluing the business with no buyer interest
Failing to understand buyer expectations
Letting operations suffer during the sale process
The fix? Start exit planning 3–5 years before you want to sell. Time gives you leverage. Leverage gets you paid.
There are five main buyer profiles, each with different motivations and deal structures:
Strategic Buyers: Industry peers or competitors
Private Equity Groups: Often require $3M+ in EBITDA
Independent Sponsors: Experienced operators with capital access
Self-Funded Searchers: Often use SBA loans
Management Buyouts: Internal team or key employee purchase
Knowing your likely buyer shapes your prep strategy.
The full sale process—after you've found a buyer—typically takes 90 days. But finding the right buyer? That could take 6–24 months or more. And preparing your business to be buyer-ready? That’s where the real work begins.
Sellers who plan ahead give themselves a massive advantage. They attract better buyers, negotiate better terms, and walk away with higher payouts.
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Exit planning is not just about spreadsheets and lawyers—it’s about protecting the legacy you’ve built and ensuring your people, your profits, and your purpose continue after you're gone.
Start early.
Invest in financial preparation.
Build a team that thrives without you.
And treat your future buyer like they’re part of the family.
Because if you do it right, they just might be.
Contact us today to learn how we can support your next deal.