When getting ready to sell, diving in before ensuring your business is sale-ready is easy. Whether you’re selling for personal reasons or business growth, reflecting on your business’s readiness will streamline the process. To help, we’ve created essential questions to guide you before engaging a broker or professionals. Answering these will help confirm your business is ready and make the process smoother for you and potential buyers.

Are you mentally prepared for your business to sell?

When getting ready to sell, it’s important to consider both the business and personal aspects. If you run a family business, emotions and identity often tie closely to your work. Make sure all owners align on the timing and vision for the sale, especially when family dynamics play a role. Additionally, personal transitions like a separation or divorce can significantly influence the sale process, particularly when both parties have ownership in the business. Understanding how these life changes can affect the sale, and knowing the legal steps to take, is crucial for a smooth transition. Navigating divorce while managing business ownership is a helpful resource that delves into these complexities, offering insights on how to manage the situation.

Are you selling because you’re burnt out?

When getting ready to sell, watch for signs of burnout that could cloud your judgment and lead to a rushed sale. Revisit your staffing or consider getting expert guidance in overwhelming areas. Feeling overworked doesn’t necessarily mean it’s time to sell—it might signal that you need a break. With the right systems, you can re-energise and continue running the business for several years instead of rushing into a decision.

Do you know what your business is worth?

Across this series (and others focused on planning your business exit), we look at maximising your business’s value to attract the right buyer while honouring its worth.

Off the top of your head, what does your business value look like on paper? Do you have a rough figure in mind, and can you justify that with financials?

You’d discuss this closely with a business broker during the sale process. Still, getting familiar with what you think your business will sell for and the reality of what the market is saying is never a bad idea. Don’t get blindsided by expecting a certain value and only being disappointed during the sale process. Planning a feasible and reasonable sale is key.

Look at where the money from the sale will go post-sale. Consider whether specific costs or living expenses need to be funded by the payout, and determine if staying as the owner is more financially viable.

Selling your business can be a detailed, time-consuming process. A skilled business broker can certainly relieve much of the weight and pressure, but make sure you have the mental bandwidth and capacity to handle the sale. 

Next time, we’ll examine how a GAP analysis can help create a sale-ready business.