Preparing Your Business for Sale (Part 1)

Part 1: Cleaning House

If you are a business owner contemplating the sale of your business in the next 3-5 years, there are several things you can start doing now, which will greatly help in the end AND, make your company stronger during the process. These things don’t have to all be done at one time, but each one is an important part of the process.

As a former business owner who had 25-30 employees, I get it. “I’m too busy, I need to focus on the work in front of me…I’ll get to it later.” Even when you think you found the perfect time to work on one of these tasks, ‘that’ phone call comes--you know, the one which pushes everything else aside and completely ruins your day. (I used to call that my normal workday!) But you never know when circumstances (such as poor health) or opportunities (an offer that’s “too good to pass up”) might force your hand, so at least forcing yourself to begin this process is also helping to protect your legacy and your employees.

Start simple. Let’s start the process by cleaning house. You never know when an opportunity will arise, and you can never make a second ‘good first impression.’

• Literally--clean house. Walk into your company like you have never been there before—or ask a friend/family member to. What do you see? Is it fresh, inviting, positive? Or is it cluttered, disorganized and tired looking. (Remember, first impressions.) Carry this process throughout your organization-not just the main office space. Every work-space should look clean and presentable.  Same with the outside. Freshening up the paint, trimming hedges, and cleaning up any garbage and/or debris will dramatically enhance a first impression. If you have to have things outside, like pallets, stack them neatly, don't just randomly throw them in a pile. Creating a nicer environment will also help to energize your employees-thus it is a win/win.

Okay, that’s enough for now, and it’s a good start. In Part 2, we will focus on getting your Financials in a better place.

If you have any questions about this article, or about selling your business in general, please reach out to me anytime.

About the Author

Walter J. Szymanski is a Director at Everingham & Kerr, Inc. A boutique merger & acquisition advisory firm in NJ. Walter holds a BA in Finance, is a Merger & Acquisition Master Intermediary (M&AMI) from M&A Source, a Certified Business Intermediary (CBI) from the International Business Broker Association (IBBA) and a certified Financial Modeling and Valuation Analyst (FMVA). Prior to his work in M&A, Walter was the 3rd generation owner of a family business which he sold in 2008.

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