Deciding to sell your business is one of the most significant financial and personal decisions a business owner will ever make. For many owners, it’s not a single moment, but a growing realization, prompted by market conditions, personal goals, succession questions, or simply the sense that it may be time to explore what comes next.
While every transaction is unique, successful exits tend to follow a similar disciplined process. The earlier you begin preparing, and the more intentionally you assemble the right advisory team, the more options and leverage you typically have.
Below is a high-level roadmap designed to help business owners understand the key steps involved in preparing for and executing a successful sale.
Clarify Your Objectives
Before engaging advisors or approaching buyers, it’s critical to define what success looks like for you.
- Define why you are selling (e.g., retirement, new venture, raising capital, other).
- Determine your timeline (e.g., immediate exit vs. 12–24+ months).
- Decide what you want out of the deal (e.g., full exit, partial rollover, earn-out, or staying on as a consultant).
- Establish the type of buyer you’re targeting (e.g., competitor, strategic buyer, private equity, individual buyer, key employee(s), or ESOP).
Assemble the Right Advisory Team
Selling a company is not a DIY process. Having experienced advisors in place helps protect value, reduce risk, and manage complexity.
- If you do not have accounting support, engage a fractional or interim CFO to organize financial reporting, manage accounting readiness, and address tax considerations.
- Hire an experienced sell-side attorney to review legal documentation, advise on deal structure, and support you through due diligence.
- Select an experienced investment banker or M&A business broker—whether or not you already have a buyer.
- Retain a tax and wealth advisor to help structure the transaction and plan for tax-efficient management of sale proceeds.
Get Your House in Order
Buyers pay a premium for clarity, consistency, and reduced risk.
- Ensure financial records are clean, accurate, and well organized.
- Prepare 3–5 years of Profit & Loss statements, Balance Sheets, Cash Flow Statements, and tax returns.
- Resolve outstanding legal, tax, or corporate governance issues (e.g., unfiled returns, pending litigation, or missing corporate records).
- Document key business processes so the company can operate with less owner dependence—a major factor for many buyers.
Determine a Realistic Valuation
Understanding what your business is worth—and why—sets expectations and strengthens negotiations.
- Obtain a professional valuation from your investment banker or M&A advisor.
- Many small to mid-sized businesses sell at approximately 5–10x EBITDA, depending on industry, size, growth rates, and risk profile.
- Gain clarity on market conditions, valuation multiples, and buyer dynamics specific to your industry.
Prepare Sales Materials and Buyer Strategy
Preparation and confidentiality are essential at this stage.
- Work with your M&A advisor to develop a Confidential Information Memorandum (CIM) that outlines the company overview, financials, customer and supplier relationships, organizational structure, growth opportunities, risks, and key data.
- Maintain strict confidentiality to avoid unnecessary disruption among employees, customers, and suppliers.
- Use Non-Disclosure Agreements (NDAs) or Confidentiality Agreements before sharing sensitive financial or operational information.
Market the Business and Negotiate
A structured process helps maximize value and minimize distractions.
- With your investment banker, identify and qualify potential buyers.
- Allow your advisor—guided by your priorities—to lead negotiations around price, payment structure, earn-outs, employee retention, and transition terms.
- Decide whether the transaction will be an asset sale or stock sale with input from legal and tax advisors, as each carries significant implications.
Due Diligence and Closing
This phase requires patience, precision, and strong coordination.
- Buyers will conduct detailed due diligence across financials, legal matters, contracts, and liabilities.
- Rely on your CFO, legal counsel, and M&A advisor to manage requests and keep the process moving.
- Finalize transaction documentation, including purchase agreements, asset or share transfers, employee and contract transitions.
- Confirm a clear transition plan—whether that involves a clean exit or an advisory role for a defined period.
Post-Sale Considerations
The transaction doesn’t end at closing.
- Communicate the sale thoughtfully and promptly to employees, customers, suppliers, and key stakeholders.
- Work closely with your wealth and estate planning advisors to deploy capital strategically, manage tax exposure, and align investments with long-term goals.
Selling a business is a process.
The decisions made well before a transaction, like how the company is structured, how financials are maintained, and how risks are addressed, often matter more than the final negotiations.
Even if a sale isn’t imminent, understanding your readiness can clarify options and prevent rushed decisions later. With the right financial discipline and experienced guidance, owners are better positioned to move forward on their terms, whether that means selling soon, preparing over time, or deciding not to sell at all.
At Florida CFO Group , we work with business owners to bring clarity to complex financial decisions and help them think through transitions before they become urgent.
About the Florida CFO Group
As a fractional CFOs, The Florida CFO Group works with small and mid-sized businesses to design capital strategies, navigate lender relationships, and ensure financial stability. Whether you’re considering your first loan or refinancing existing debt, we help you make confident, data-driven decisions.
About the Author
John Cruickshank, C.A. advises small- and mid-sized privately owned companies ($20M–$500M) on financial and operational strategy across all stages of growth—from early development and steady operations to expansion and exit planning. He brings executive-level perspective while remaining hands-on when detail matters, and is known for building strong working relationships and fostering clear, effective communication across teams.
Contact Us
If you have any questions or would like to discuss your organization’s finance and strategic management needs, please call the Florida CFO Group at 1-877-352-2367 or send us a message. We are here to help you navigate your financial challenges and achieve success!