How to get ‘sale ready’ long before you need a sale

As in life, when it comes to selling a business, first impressions really matter!

To command a premium valuation, business owners must prepare their businesses well before stepping into the market. Positioning your business properly can be the difference between a disappointing offer, an acceptable offer, and an exceptional offer.

Here’s how to ensure you’re maximising value and setting yourself up for a successful exit.

Understand what drives value in your business

Valuation is not purely about revenue or profit. Buyers are always paying for the future, and never for the past. Focus on the (real) underlying drivers of value, such as:

• Consistent revenue and strong margins: Recurring income streams are gold. High-margin, repeatable business models are even better!
• Growth potential: A credible pathway to growth – whether through new markets, new products, or strategic partnerships – adds significant appeal.
• Customer and supplier diversity: Avoid reliance on a small group of customers or suppliers. Diversity reduces perceived risk and boosts valuation​
• Management independence: Buyers pay more for businesses that can run without their current owners​

Prepare clean, reliable (and readable) financials

Financial transparency is essential. Messy, incomplete, or inconsistent records erode trust – and price. Key actions include:

• Audit or review financials: Where possible, obtain an external audit or independent review​
• Normalise earnings: Adjust for non-recurring items to present a true picture of maintainable earnings.
• Benchmark KPIs: Know your key financial and operational metrics relative to industry standards.

De-risk your business

Every buyer will conduct due diligence with a sharp eye on risks. Identify and fix issues before they become negotiation sticking points:

• Legal compliance: Ensure all contracts, leases, employee agreements, and IP protections are documented and up to date.
• Operational systems: Invest in scalable systems that professionalise the business beyond founder involvement​.
• Management succession: Strengthen second-tier leadership and, if necessary, install a General Manager or COO who can transition into key roles post-sale​.

Build a (compelling) growth narrative

Buyers pay for potential. Help them see the upside:

• Strategic plan: Articulate a clear, credible growth plan that new owners can execute.
• Pipeline of opportunities: Show evidence of future projects, contracts, or partnerships.
• Brand strength: Invest in brand positioning and marketing to demonstrate market leadership and visibility​.

Find a path to competitive tension

A well-run sale process creates urgency and competition among buyers – and nothing increases offers more than fear of coming second in a bidding process:

• Target multiple buyer types: Strategic acquirers, financial investors, and even management buyouts each value businesses differently​.
• Confidential Information Memorandum (IM): Prepare professional materials that tell a consistent, compelling story.
• Experienced advisors: Use advisors who understand how to manage buyer dynamics, extract maximum offers, and keep processes moving​.

Conclusion: It’s not about selling, it’s about preparing to sell

The best exits don’t happen by accident – they happen by design. Preparing your business properly ensures you don’t just find a buyer – you find the right buyer, at the right price, on the right terms.

At Qurate, we believe preparation is the most powerful tool business owners have to protect and maximise the value they’ve worked so hard to build. Thinking of selling? Start preparing now.