Preparing to Sell Your Business: 4 Steps to Maximize Value

Selling your business is one of the most significant decisions you’ll make as an entrepreneur. After years of building something from the ground up, the stakes are high–both financially and personally. Success depends on adequately preparing to sell your business and having the right legal strategy from day one.

At Petersen + Landis, we’ve guided countless business owners through successful exits. The difference between deals that exceed expectations and those that fall apart often comes down to preparation. Here’s how you can prepare.

Preparing to sell your business is exciting, but it can be intimidating, especially as you consider what you want to sell it for. Here are 4 steps you can take to maximize value when preparing to sell your business:

Know Your Exit Strategy
Get Your House in Order
Market Timing and Competition
The Due Diligence Process

1. Know Your Exit Strategy

Strategy buyers (competitors, suppliers, adjacent companies) typically pay premium valuations for synergies they can’t achieve organically. Private equity firms focus on growth potential, often keeping management in place and offering “two bits at the apple” through rollover equity.

The key question: What do you want post-sale? Complete exit with maximum cash, or continued involvement with upside potential? Your answer drives buyer selection.

2. Get Your House in Order

Financials First: Buyers dissect your numbers with surgical precision. Ensure three years of clean, audited statements. Address revenue concentration–if one customer represents over 20% of revenue, expect intense scrutiny. Consider a sell-side quality of earnings analysis to identify issues before buyers do.

Legal Infrastructure: Nothing kills deals faster than legal surprises. Corporate documents must reflect current ownership, key contracts need review for change-of-control provisions, and employment agreements require attention for retention planning.

Operational Excellence: Buyers invest in businesses, not jobs for sellers. Begin transitioning key responsibilities months before going to market. Document processes, diversify customer relationships, and build management depth.

3. Market Timing and Competition

Create competitive tension among multiple buyers – this typically drives 10-30% higher valuations. Avoid granting exclusivity too early, and understand that deal structure often matters more than headline purchase price.

4. The Due Diligence Process

Sophisticated sellers prepare comprehensive data rooms before engaging buyers. Organize documents logically and anticipate questions. The goal is making due diligence feel confirmatory rather than investigative.

Why Petersen + Landis Makes the Difference when Preparing to Sell Your Business

We serve as your strategic partner throughout the entire process when preparing to sell your business:

Preparation Phase: Comprehensive legal audits to resolve issues before they derail deals.
Buyer Engagement: Structure competitive processes while protecting your interests.
Due Diligence: Coordinate responses efficiently while maintaining deal momentum.
Closing & Beyond: Ensure documentation protects your interests and coordinate post-closing obligations.

Our clients consistently achieve better outcomes because we combine deep M&A expertise with genuine partnership in their success. We’ve guided sales from $5 million to over $100 million, understanding that each transaction is unique.

Ready to explore your options? Your business represents your life’s work. Let us help you realize its full value. Contact Petersen + Landis today to discuss your exit strategy.