You've built something. Years of hard work, late nights, tough decisions.
Now you're thinking about selling.
Maybe you're ready to retire. Maybe you want to do something new. Maybe you just want to cash out while the business is strong.
Whatever your reason, here's the truth: Most business sales fail because owners wait too long, show messy books, or go it alone.
You don't have to be one of them.
There are three pillars that separate successful exits from disappointing ones. Get these right, and you'll walk away with the number you want. Get them wrong, and you'll leave money on the table, or worse, never sell at all.
Let's break them down.
Pillar 1: Timing and Preparation
The best time to prepare for your exit is five years before you want to sell.
That's not a typo.
Most owners start thinking about selling when they're burned out or when the market shifts. By then, it's too late to fix the things that make your business valuable.
Start early. Plan ahead.
Here's what preparation looks like:
Build Systems That Run Without You
Buyers don't want to buy you. They want to buy a business.
If you're the one answering every email, closing every deal, and solving every problem, your business isn't sellable. It's a job that depends on you showing up every day.
Start delegating. Document processes. Train your team to handle what you handle.
The goal is simple: your business should run smoothly when you're on vacation.
Grow Revenue and Profit Consistently
Buyers look at trends, not snapshots.
One great year followed by two mediocre ones raises red flags. It looks like luck, not momentum.
You want three to five years of steady growth. It tells buyers your business isn't a flash in the pan, it's a machine that keeps producing.
Clean Up Loose Ends
Walk through your business like a buyer would.
Are there unresolved legal issues? Equipment that needs replacing? Key employees without contracts? Customer concentration problems where one client makes up 40% of your revenue?
Fix these now. Buyers will find them during due diligence, and they'll either walk away or use them to negotiate your price down.
Preparation isn't glamorous. But it's the difference between a clean sale and a stressful nightmare.
Pillar 2: Clean, Accurate Financials
Your financials tell the story of your business.
If the story is confusing, incomplete, or hard to follow, buyers won't stick around to figure it out.
Here's what you need:
Three Years of Clean Books
Buyers want to see profit and loss statements, balance sheets, and cash flow reports for at least three years.
And they need to be accurate. Not "close enough." Not "we think this is right."
If your bookkeeping is a mess, hire someone to clean it up. Yesterday.
Tax Returns That Match Your Books
This one trips up a lot of owners.
You might run personal expenses through the business to reduce your tax bill. That's fine, but it complicates the sale.
Buyers need to see what the business actually earns. You'll need to create an "adjusted EBITDA" that adds back personal expenses, one-time costs, and owner perks.
If your tax returns and your books tell two different stories, expect buyers to get nervous.
Recurring Revenue Is Gold
Buyers love predictability.
If you have contracts, subscriptions, or repeat customers who come back month after month, highlight it. Recurring revenue makes your business less risky and more valuable.
If you don't have recurring revenue, build it. Even small predictable income streams can boost your valuation.
Bottom line: clean financials aren't optional. They're the foundation of trust between you and a buyer.
Pillar 3: The Right Advisory Team
You wouldn't perform surgery on yourself. Don't try to sell your business alone.
Selling a business is complicated. There are legal issues, tax implications, buyer negotiations, due diligence, and a hundred moving parts you've never dealt with before.
You need a team.
Business Broker or M&A Advisor
A good broker does more than list your business.
They know how to position it, market it to qualified buyers, and negotiate on your behalf. They've been through dozens of deals, and they know where things can go wrong.
Yes, they cost money. But they'll more than pay for themselves by getting you a higher price and keeping the deal from falling apart halfway through.
Accountant or CPA
Your accountant helps you understand the tax impact of the sale.
Different deal structures have different tax consequences. Selling assets versus selling stock. Earnouts versus lump sums. Your accountant helps you keep more of what you earn.
Attorney
You need a lawyer who specializes in business transactions.
They review the purchase agreement, protect you from liability after the sale, and make sure you're not agreeing to something that comes back to bite you later.
Don't use your cousin who does real estate law. This is too important.
Valuation Expert
Before you list your business, you need to know what it's worth.
Not what you think it's worth. What the market will actually pay.
A professional valuation gives you a realistic number to work from and helps you set the right asking price.
Your team protects you, guides you, and maximizes your outcome. Don't skip this step.
Pulling It All Together
Let's recap.
Pillar 1: Timing and Preparation. Start early, build systems, grow consistently, and fix problems before buyers see them.
Pillar 2: Clean Financials. Get your books in order, make sure your tax returns match, and highlight recurring revenue.
Pillar 3: The Right Team. Hire a broker, accountant, attorney, and valuation expert who know what they're doing.
These three pillars aren't magic. They're just the fundamentals that separate owners who sell successfully from owners who regret waiting too long.
You've spent years building your business. Don't waste that effort by winging the exit.
Ready to Start Planning Your Exit?
At Vision Fox Business Advisors, we help business owners prepare for and execute successful exits.
Whether you're thinking about selling in the next year or just starting to plan for the future, we can help you understand what your business is worth, what needs to be fixed, and how to position it for the best possible outcome.
Reach out to us today to schedule a free consultation. Let's make sure your exit is everything you've worked for.
FAQ
How long does it take to sell a business?
Most business sales take 6 to 12 months from listing to closing. Complex deals with larger businesses can take longer. That's why preparation is so important: you can't rush the process once you start.
What if my financials aren't perfect?
Fix them before you list. Buyers will walk away from messy books, or they'll use them to negotiate your price down. It's worth investing in a good bookkeeper or accountant to clean things up first.
Do I really need a broker?
You don't have to use one. But most owners who go it alone either never find a buyer or leave significant money on the table. A good broker pays for themselves by getting you a higher price and keeping the deal on track.
What's the biggest mistake sellers make?
Waiting too long to start preparing. By the time most owners decide to sell, they've already missed opportunities to increase value. Start planning your exit years before you want to leave.