When should I start planning to sell my business?

The short answer? Sooner than you think.

Most business owners underestimate how long it takes to sell - and more importantly, how long it takes to get their business ready for a sale. If you wait until the last minute, you might leave money on the table, face unexpected tax burdens, or struggle to find the right buyer.

So, when should you start planning?

• Right now, if you’re even considering selling in the next few years. The earlier you start, the more options you have.

• Ideally, 2-3 years before you plan to sell. This gives you time to clean up financials, improve operations, and increase your valuation.

• At a minimum, 12 months ahead. This ensures you’re prepared for due diligence and have time to negotiate the right deal.

What happens if I wait too long to start planning my business sale?

You might get stuck with a lower sale price because buyers will find weaknesses you don’t have time to fix. The biggest issue: unplanned taxes could take a bigger cut of your proceeds than necessary if you don’t structure the sale ahead of time.

We’re not here to pressure you, but we do know this: The best deals happen when business owners are prepared. If selling is even a possibility for you, let’s start the conversation now so you can sell on your terms and keep more of what you’ve built.

How much is my business actually worth?

Good question - because it’s probably not what you think it is. A lot of owners either overestimate or underestimate their value. The most common way to price a business is by using a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization). But that’s just a starting point.

Other factors matter too - like how stable your revenue is, how dependent the business is on you - the business owner - personally, industry trends, and even your customer base. A business with recurring revenue and strong contracts is worth more than one with unpredictable sales.

If you really want a solid number, a professional valuation can help. It’s not free, but it gives you leverage when negotiating with buyers.

How can I get the highest price for my business?

Think of your business like a house you’re about to sell. You want it to be as appealing as possible before listing it.

Buyers love businesses with clean financials, documented systems and steady cash flow. They also want a business that doesn’t fall apart the second the owner steps away. If you’re the only person who knows how everything works, that’s a red flag.

Start by tightening up operations, getting your books in order, and making sure your team can handle things without you. The easier you make it for a buyer to step in, the more they’ll be willing to pay.

What do I need to do to prepare my business for sale?

The best thing you can do is clean things up before buyers start looking. That means:

• Organizing financials (tax returns, P&L statements, balance sheets)

• Documenting how the business runs (so it doesn’t rely only on you)

• Clearing up any debts or legal issues that might scare buyers away

Think of it as giving your business a “deep clean” before putting it on the market.

How much tax will I pay when selling my business?

Short answer: You will owe taxes, it depends on how the deal is structured.

Here’s the simple version:

• If you’re selling assets (like equipment and inventory), different parts of the sale get taxed differently. Some might be taxed at a lower rate, while others could be taxed like regular income.

• If you’re selling stock/shares (if your business is set up that way), the whole sale is usually taxed at a lower capital gains rate.

The way the deal is structured can make a big difference in how much you actually keep. Some owners spread payments out over time or reinvest in certain ways to reduce their tax hit.

We help business owners understand their options and work with experts who specialize in this kind of planning. And, we’ll work together with your CPA and your other trusted resources during the process. If you’re thinking about selling, let’s talk. We can walk you through ways to make the most of your sale. We don’t charge for these conversations, ever.

What financial records will buyers want to see?

Buyers don’t just take your word for it - they want proof. Expect to share:

• Tax returns (3-5 years)

• Profit and loss statements

• Balance sheets

• Debt obligations

If your books are a mess, now’s the time to clean them up.