Thinking About Selling Your Business? Here’s What You Need to Do Now
Selling a business isn’t just a transaction—it may be a once-in-a-lifetime opportunity to turn years of hard work into long-term wealth. But if you’re a business owner with a company valued at $1 million or more, exiting the right way takes more than finding a buyer.
Business owner succession planning is complex, and most owners don’t start early enough. In this post, we’ll break down three essential steps to prepare for a successful business exit—so you can move forward with greater clarity, confidence, and a well-prepared financial plan for the future.
1. Know What Your Business Is Worth—And How to Increase It
What is business valuation?
Business valuation is the process of determining the fair market value of your company, based on assets, revenue, market comparables, and other financial metrics.
Many business owners overestimate their business’s value. Getting a professional valuation early—ideally 2–3 years before you plan to sell—gives you time to fix issues and improve financials.
Takeaway:
Consider starting with a valuation from a qualified expert, which can help you identify potential levers that could increase your company’s worth, such as:
- Recurring revenue
- Documented systems
- Strong management team
- Clean financial statements
This insight helps you price and position the business attractively—and avoid leaving money on the table.
2. Build Your Exit Team Early
How does a business owner plan an exit?
A successful exit involves legal, financial, and tax considerations. Assembling a team of professionals ensures each piece is covered and coordinated.
Depending on your goals, your exit team may include:
- Business M&A attorney to structure the sale agreement
- Tax advisor to help evaluate strategies for managing capital gains and income tax liabilities, based on your individual situation.
- Business broker or investment banker to find qualified buyers
- Fiduciary financial advisor to plan for your post-sale life
Takeaway:
Engage professionals before you list the business. An integrated plan prevents surprises and can help you make informed decisions to preserve the value you’ve built, subject to tax and legal outcomes.
3. Prepare Your Business to Thrive Without You
Why does succession planning matter when exiting a business?
Buyers don’t just want a profitable business—they want one that runs smoothly without its founder.
If you’re still the face of the brand, hold key relationships, or make all strategic decisions, your company’s value drops the day you leave.
Checklist for succession readiness:
- Delegate key responsibilities
- Document systems and processes
- Secure long-term client contracts
- Train or hire capable leadership
- Audit financial records for accuracy
Takeaway:
A buyer-ready business doesn’t need you to operate. That makes it more valuable—and more attractive to buyers, potentially improving sale readiness and valuation..
4. Create a Post-Sale Financial Plan
Once the deal is done, how will the proceeds support your life? A financial advisor with experience in business transitions can help you:
- Allocate assets for income and growth
- Manage tax-efficient withdrawals
- Plan your estate and legacy
- Protect your newfound wealth
This step is critical—and often overlooked until it’s too late.
Final Thought: Don’t Go It Alone
Selling your business is a once-in-a-lifetime event for most owners. You’ve spent years—maybe decades—building something meaningful. You deserve to walk away with confidence and peace of mind.
As a fee-only fiduciary financial advisory firm based in the Phoenix area, we specialize in helping business owners like you navigate this transition and plan for a secure financial future. If you’re thinking about selling your business in the next few years, let’s start the conversation now.
Want help preparing for your business exit? Schedule a free consultation with our team today.
Disclosure
This content is for informational purposes only and should not be considered financial, tax, or legal advice. Individual circumstances vary, and tax and estate laws are subject to change. Consult a qualified professional before making any decisions. Watts Gwilliam & Company is an SEC-registered investment advisor; registration does not imply a certain level of skill or training. We act as fiduciaries, prioritizing clients’ best interests and fully disclosing any material conflicts of interest. Investing involves risk, including potential loss of principal. Past performance is not indicative of future results.
