Thinking About Selling Your Business?
Thinking About Selling Your Business? Start Here First.
John sat in his office, staring at the financial reports spread across his desk. For years, he’d poured everything into building his business: late nights, missed family events, and calculated risks that were paying off. Now, the thought of selling his business and stepping into the next chapter was tempting… but one question kept nagging him: Am I really ready to sell?
Selling a business isn’t as simple as finding a buyer and signing papers. To get top dollar and avoid regrets, you need to prepare your business and yourself for the sale. That preparation starts long before you list your company.
Here are the three financial areas that will make or break your sale:
Financial Transparency: Buyers Don’t Like Surprises
The first thing any serious buyer will do is dig into your financials. If they’re messy, incomplete, or inaccurate, don’t expect a premium offer. To command top dollar, you need to have:
- Accurate financial statements that clearly reflect the health of your business.
- Timely monthly closings so financials are always up to date.
- Accrual-based accounting that matches revenue and expenses accurately.
Forward-Looking Projections: Paint the Picture of Future Profitability
A buyer isn’t investing in what was. They’re investing in what could be. That’s why forward-looking financial projections are critical.
- Can you clearly show what the buyer’s expected return on their purchase will be?
- Do your projections demonstrate growth and profitability potential?
- The key metric buyers will focus on is EBITDA. Strong EBITDA and credible forecasts will give buyers the confidence to pay full value or even a premium for your business.
Financial Acumen: Is Your Leadership Team Ready?
During the sale process, buyers will closely evaluate your leadership team’s financial and business preparedness. Why? Because after the sale, they’ll rely on that team to execute the growth plans behind their investment.
- Does your management team understand financial drivers and key metrics?
- Can they articulate growth strategies with financial clarity?
At TMG Consulting, we work directly with ownership and management teams to strengthen financial leadership, and if it makes sense, we’re prepared to serve as a key member of your leadership team throughout the sale process and transition.
Plan Ahead to Maximize Your Exit
Don’t wait until you’re “ready to sell” to start preparing. Whether you’re thinking about selling in the next year or the next five, the time to strengthen your financial position is now.
At TMG Consulting, we help businesses navigate these financial pillars and position themselves for maximum value. Let’s put our expertise to work for you so when the time comes, you’re not just ready to sell, you’re ready to win.