Selling your business for top dollar doesn’t always require massive overhauls. Some of the most impactful steps are also the easiest to tackle. Here are a few lower hanging fruit items you can focus on before going to market:
1. Clean Up the Financials
Buyers want clarity. Ensure your financial statements are up-to-date, accurate, and easy to understand. Eliminate unnecessary expenses, resolve outstanding tax issues, and separate personal expenses from business accounts. A well organized P&L and balance sheet can increase buyer confidence and as a result, your sale price. In addition, I’ve found that having notes from the seller, proactively, on why revenue may have declined one month, or spiked another, as an example can go a long way.
2. Streamline Operations
A business that runs smoothly without owner dependence is more attractive. Document key processes, delegate responsibilities, and ensure employees can operate efficiently without you. Buyers pay a premium for a turnkey operation.
3. Lock in Key Employees & Customers
Retention matters. Secure long term commitments from top employees and key customers where possible. A business with stable relationships and predictable revenue looks far less risky to buyers.
4. Reduce Owner Dependence
If the business revolves around you, it’s harder to sell. Transition client relationships to your team, automate tasks where possible, and establish a leadership structure that proves the business can thrive post-sale. This is often where I have consulted clients in the past that are transitioning into selling their business to take a long vacation… see how the business does without you there. What went well? What didn’t go well?
5. Fix Small but Noticeable Issues
Much like staging a house before selling, fixing minor operational inefficiencies, renegotiating costly contracts, and addressing outstanding legal matters make a big difference. Small changes create a stronger perception of value.
6. Tidy Up the Digital Presence
An outdated website, poor online reviews, or inactive social media can deter buyers. Refresh your website, respond to reviews in a professional manner, and ensure your business appears professional/well maintained. Afterall, one of the first places a buyer goes is to search for your business online.
