Sell · 6 min read
How to prepare your business for sale
A practical guide to the records, systems, risks and value drivers worth reviewing before you sell a business.
Preparing early gives you time to explain the business clearly, address avoidable risks and make the handover less dependent on you. The aim is not to make the business look perfect. It is to make the evidence organised, the risks visible and the opportunity understandable.
Start with reliable financial information
A buyer will usually want to understand how the business earns money, what it costs to operate and whether recent results are repeatable. Bring your bookkeeping up to date and separate business expenses from personal or one-off items.
- Recent profit and loss statements and balance sheets
- Tax returns and business activity statements
- A clear explanation of owner wages, one-off costs and unusual income
- Working-capital needs, debt and major upcoming expenditure
Reduce owner dependence
A business can be harder to transfer when essential relationships, decisions and knowledge live only with the owner. Document recurring work, delegate where practical and record how important customers, suppliers and staff are managed.
Review contracts, premises and compliance
Check whether key contracts can be transferred, how much time remains on the lease and whether licences or approvals depend on the current owner. Identify issues early so they can be explained or resolved before negotiations become urgent.
Make the growth story evidence-based
Potential is more persuasive when it is connected to evidence. Show where enquiries come from, which products or services perform well, what customers ask for and which improvements have already been tested.
BizEX can help organise these questions into an indicative view of value and sale readiness. It is not a certified valuation or a substitute for legal, tax or financial advice.
General information only. Consider obtaining advice suited to your circumstances before making a business, legal, tax or financial decision.