One of the most common questions I hear from owners is:
“How long before I sell should I start preparing?”
My answer – one that surprises most people – is simple:
If you plan to sell any time in the next 1–10 years, you should begin preparing now.
That might sound early.
But the reality is this:
The companies that sell quickly, at premium valuations, don’t get there by accident.
They’ve done the work in advance.
Below are the core steps that have the greatest impact on value – and they take time.
Starting early gives you the greatest leverage.
✅ 1. Build Out (or Clean Up) Your Org Chart
Buyers pay for businesses that run on systems – not on owners.
If you’re still the hub of everything, that’s a problem.
A well-defined org chart shows:
- Who is accountable for what
- Where the gaps are today
- What must be built to sustain growth
The more your business can operate without you, the more valuable it becomes.
✅ 2. Document Standard Operating Procedures (SOPs)
Repeatability = value.
Buyers want confidence that:
- Your results can be repeated
- Tribal knowledge is captured
- New talent can onboard quickly
Even if you start small – documenting core workflows – you’re creating real transferable value.
✅ 3. Clean Up Financials
Messy financials destroy value – or kill deals entirely.
Prepare by:
- Producing clean, accurate financial statements
- Ensuring proper accrual-basis accounting
- Reducing add-backs and discretionary expenses
- Tightening expense controls
A buyer (and their lender) will scrutinize everything.
The clearer your financial picture, the higher your valuation – and the faster the deal.
✅ 4. Improve EBITDA
Every additional dollar of EBITDA is often worth 3–10x (or more) during a sale.
That means a small operational change today can produce a multiplying effect during the transaction.
Start tracking:
- Pricing strategy
- Efficiency gains
- Overhead reduction
- Recurring revenue
- Vendor consolidation
EBITDA is the fuel that drives maximum exit value.
✅ 5. Identify Your Best Buyer Profiles
Not all buyers are equal.
A strategic buyer or private equity group with synergy value may pay far more than a financial buyer.
Pre-identifying likely best-fit buyer pools helps you:
- Position your business properly
- Make strategic investments that buyers value
- Tell a growth story aligned with their goals
The smartest sellers start building this strategy years before they go to market.
The Bottom Line
If you’re 1–10 years away from selling –
you’re right on time to start preparing.
The best exits don’t happen because someone knocks on the door at the perfect moment.
They happen because the owner was intentional – early.
Start the work before you think you need to.
You’ll:
- Increase your valuation
- Reduce due-diligence stress
- Attract better buyers
- And ultimately have more options
The sooner you begin, the more leverage you gain.