Thinking about selling your business is a major milestone. Here at Pensacola Business Brokers, we often speak with owners who are ready to get a business valuation and list their business immediately. However, we’ve learned from over 300 successful sales that the most profitable transactions don’t start there. They start months, or even years, earlier with careful preparation.
Putting your business on the market is like putting a house on the market—the better it looks, the more valuable it becomes to potential buyers. Taking the time to “tidy up” key areas of your operation can significantly increase your final sale price and lead to a faster, smoother transaction. Before you even think about a “For Sale” sign, focus on these three critical areas.
1. Get Your Financials in Flawless Order
Buyers are not buying your story; they are buying your numbers. Vague, disorganized, or co-mingled financials are the biggest red flags for any potential acquirer. Your goal is to present a clear, verifiable financial history that any accountant would love.
Separate Personal and Business Expenses: If you’ve been running personal expenses (like car payments or family phone bills) through the business, work with your accountant to clean this up and stop the practice.
Update Your Core Statements: Ensure your Profit & Loss (P&L) statements, balance sheets, and cash flow statements are up-to-date and accurate for at least the last three years.
Organize Your Tax Returns: Have at least three years of federal income tax returns for the business readily available.
2. Strengthen and Document Your Operations
A business that is heavily dependent on its owner is a business that is difficult to sell. A buyer needs to be confident that the operation will continue to run smoothly long after you’re gone. This is where strengthening your internal processes becomes critical.
Document Everything: Create Standard Operating Procedures (SOPs) for key functions. How do you acquire customers? How are orders fulfilled? Who are your key suppliers? A well-documented business is a turnkey investment.
Solidify Key Contracts: If you have key employees, customers, or vendors, ensure you have formal agreements or contracts in place where appropriate. This demonstrates stability.
Delegate Responsibilities: Start actively delegating key tasks. If you are the only person who can close a sale or manage a top client, you need to train others to handle those responsibilities.
3. Boost Your “Curb Appeal” (Physical and Digital)
First impressions matter immensely. A buyer’s initial perception of your business can set the tone for the entire negotiation. This applies to both your physical location and your online presence.
Physical Cleanup: If you have a physical location (like a retail store, warehouse, or office), make sure it is clean, organized, and well-maintained. A fresh coat of paint, organized inventory, and repaired equipment can make a world of difference.
Update Your Digital Presence: Does your website look like it was made in 2005? Are your social media profiles dormant? A modern website and active social presence signal a healthy, relevant business.
Review Your Assets: Make a list of all furniture, fixtures, and equipment (FF&E) included in the sale and ensure everything is in good working order.
Talk with an Expert Today!
At Pensacola Business Brokers, we know that taking these steps to prepare your business for sale does more than just tidy up your books and operations—it fundamentally increases the value of your asset. It shows buyers that you are a serious, professional owner and gives them the confidence they need to make a strong offer.
If you’re starting to think about your exit strategy, the best time to start preparing is now. The team at Pensacola Business Brokers is here to help. Let’s have a confidential, no-obligation conversation about how to position your business to achieve its maximum sale price.