Selling a business is a major milestone in any entrepreneur’s journey and before getting started it is important to look at the top things to do before selling your business. Whether you’ve spent years building your company from the ground up or acquired it and grew it over time, a successful exit requires careful planning and preparation. Buyers are increasingly savvy, and they’re looking for businesses that not only perform well financially but are also organized, transparent, and primed for transition.
To help you get ready, here are five essential things you should do before selling your business. These steps can help maximize your business’s value, speed up the sale process, and make your company more attractive to serious buyers.
Get Your Financial Records in Order Before Putting the Business Up for Sale
One of the first things a potential buyer will ask for is your financial documentation. If your books are messy, incomplete, or difficult to understand, it can raise red flags and scare away interested parties. Clean, accurate, and professionally prepared financials inspire confidence and lay the groundwork for a smoother due diligence process.
Before listing your business for sale, make sure you:
- Use accrual accounting (not just cash accounting), which presents a more accurate financial picture.
- Reconcile all bank accounts, credit card statements, and vendor payables.
- Review your profit and loss statements, balance sheets, and cash flow reports for the last 3–5 years.
- Organize records into clearly labeled folders—ideally digitized—for easy sharing with your broker, attorney, or prospective buyers.
Having professionally prepared financial statements from a CPA can also add credibility and reduce questions during the negotiation process.
Update Tax Returns and Normalize Add-Backs
Along with financials, updated tax returns are essential for buyers and lenders. Make sure all business tax filings are current and match your internal accounting records. Any discrepancies can raise doubts about your business’s legitimacy or profitability.
Also important is the process of normalizing earnings by identifying “add-backs”—expenses that are not necessary for operating the business and which can be added back to the bottom line. Common add-backs include:
- Owner’s salary above market rate
- One-time expenses (legal fees, repairs, etc.)
- Personal travel or vehicle expenses run through the business
- Non-recurring marketing costs
Accurately identifying and documenting these add-backs helps paint a true picture of the business’s Seller’s Discretionary Earnings (SDE), which is a key figure used in determining business value.
Put Key Personnel in Place
Buyers are looking for businesses that can run without the owner being involved in every detail. If your business depends entirely on you, it becomes harder to sell—and the price may take a hit.
Having key personnel in place ensures continuity and reduces risk for the buyer. Before you sell, take the time to:
- Train and empower managers or department heads.
- Delegate day-to-day operations where possible.
- Document standard operating procedures (SOPs) for essential functions.
- Offer employment contracts or retention bonuses to key employees you’d like to retain post-sale.
By creating a leadership structure and a team that can carry on after your departure, you’ll make the transition smoother and increase buyer confidence.
Know Your Business’s Value and Be Realistic
Understanding what your business is truly worth—based on real market data, not just your hopes or assumptions—is essential to pricing it correctly. Many deals fall apart because sellers have unrealistic expectations.
Work with a qualified business broker or valuation expert who can:
- Analyze your financials
- Evaluate industry comparables
- Consider economic conditions
- Identify your business’s unique value drivers
Don’t just focus on revenue; buyers are primarily interested in profitability, cash flow, growth potential, customer concentration, and industry stability.
Being informed about your business’s market value will help you avoid overpricing it (which can scare buyers away) or underpricing it (which can leave money on the table).
Organize Legal Documents and Contracts
During due diligence, a buyer will want to see every document related to your business’s operations. Being organized shows professionalism and builds trust. Before listing your business, gather and review all critical legal and operational documents, including:
- Business licenses and permits
- Lease agreements
- Vendor and supplier contracts
- Employment agreements and benefit plans
- Customer contracts (especially long-term ones)
- Intellectual property documentation (trademarks, copyrights, patents)
- Franchise agreements (if applicable)
Consult with an attorney to ensure your documents are up to date and that your business is in compliance with all regulatory requirements. If there are issues—such as outdated contracts, missing licenses, or legal disputes—address them before going to market.
Final Thoughts
Selling a business isn’t something to rush. The more prepared you are, the higher your chances of finding the right buyer, negotiating a favorable deal, and ensuring a smooth transition for everyone involved.
Taking the time to clean up your financials, get your tax house in order, empower your team, understand your business’s true value, and organize your documents will make your business more marketable and desirable. These efforts not only boost the likelihood of a successful sale, but also increase the final selling price.
At Truforte Business Group, we specialize in helping Florida business owners prepare, market, and sell their businesses with professionalism and discretion. Our experienced brokers understand what buyers are looking for and will guide you through every step of the selling process.
If you’re considering selling your Florida business, contact us today for a confidential consultation. Let’s help you move toward a successful exit—with confidence and clarity.
