Most owners start preparing for a sale the week they decide to sell. The ones who get full value usually started a year earlier. This checklist shows what to do and when, so nothing important is left for the last month.
Months 12 to 9: Find out where you actually stand
Start with an honest look at your numbers, not the version you carry in your head. Pull three years of financial statements and a trailing twelve months. Note any year that looks unusual and write down why. A buyer will ask.
List every expense that runs through the business but is not a real cost of operating it: personal vehicles, family on payroll, one-time repairs, owner pay above or below market. These are your add-backs. The question a buyer asks is not "is this reasonable?" but "can you prove it?"
This is also the right time for an independent read of your readiness. A free diagnostic such as the Capital Readiness Score shows where a buyer's diligence team would look first.
Months 9 to 6: Fix what takes time
Some problems cannot be solved in a month. Start these now.
- Documentation. Gather add-back support (invoices, agreements, a short written explanation of each). Organize contracts, leases, licences, insurance and corporate records in one place.
- Related-party items. Property leased from an owner's other company, loans from shareholders, family members on payroll. Clean these up or document them at market terms.
- Customer and supplier concentration. If one customer is a large share of revenue, a buyer will discount for it. Written agreements with key customers help.
- Owner dependence. If the business stops when you leave, you are selling a job, not a company. Start moving relationships and decisions to your team.
Months 6 to 3: Choose your team
Sellers who go it alone usually leave money on the table. You will typically want:
- An accountant who knows your business and can plan the tax side of the sale.
- A lawyer experienced in business sales, for the agreements, structure and any shareholder issues.
- A broker or M&A advisor if you want help finding buyers and running a process. Interview more than one and ask how they are paid.
- A diligence-readiness review to test your numbers before a buyer does.
Months 3 to 0: Get market-ready
Update your financials monthly. Prepare a short summary of the business: what it does, who it serves, why it will keep earning after you leave. Decide what you are not willing to accept (price floor, timeline, role after closing). Do not sign an LOI or grant exclusivity until you have reviewed it with your lawyer and accountant.
The one-page version
- Three years of financials plus trailing twelve months, with unusual items explained.
- Add-backs listed and documented.
- Related-party arrangements cleaned up.
- Key customer and supplier agreements in writing.
- Documents organized in one place.
- Accountant, lawyer and sale advisor chosen.
- Independent readiness check done before going to market.
Take the Free Score →
For a deeper add-back and documentation toolkit, see the Seller's Toolkit and the free Seller Due Diligence Checklist.