5 Steps to Prepare for the Sale of Your Business

By Lindsay Adams, CFP®

Selling your business isn’t just a financial decision—it’s a big life transition. After years of hard work, it’s natural to feel a mix of emotions when you start planning your exit. Along with the financials, things like company culture, customer relationships, and the legacy you’ve built all play a role in the sale.

Running a small business takes dedication and grit, and when it’s time to move on, figuring out its true worth can be tricky. Whether you’re gearing up for retirement, looking for a new challenge, or simply ready for a change, preparing ahead of time can help you attract the right buyer and get a fair deal.

Here are five key steps to help you get ready:

1. Establish Your Goals

A profitable small business is the result of successfully meeting goals. Now that you’re eyeing retirement or transition, what are your new goals?

This answer will be different for every business owner. For example, farmers looking to sell an active farming operation need to consider real estate, live assets like animals, and vendor relationships. The sale of a farming business could mean a change in housing, personal schedules, and more, so it’s important to think through what the next phase of life might look like in an ideal world.

When other entrepreneurs prepare to sell their business, many of them look for a worthy successor. Others just want to have enough wealth for a happy retirement. A few are committed to working until they hit a certain age or until their health tells them it’s time to slow down.

You may feel apprehensive about the drastic change to your daily schedule. You might want to stay close to your business without the responsibility of ownership, perhaps as a consultant or part-time worker. Or maybe you’re planning on breaking free entirely. Whatever the reality, you must define your hopes and expectations. 

2. Define Your Needs

Once you’ve settled on your goals, it’s time to figure out how to realize them. Your business may have felt like the principal indicator of your worth, sometimes to the extent of absorbing your personal life. But when it’s time to prepare to sell business assets, your personal needs should take center stage.

This is where long-term planning is a must. Calculate how much your portfolio needs to fund your retirement needs. Find potential shortfalls or obstacles and estimate what it might take to overcome them.

3. Close the Value Gap

With your financial needs set up, how can your business’s value support them? Most owners have a general idea of their company’s net worth, but when a sale is on the horizon, it’s almost always worth consulting a professional appraiser.

A business appraisal cuts through the noise and offers an objective analysis of your company’s value. The appraiser can find the gaps between your business assets and your post-ownership needs. They focus on how to maximize your business’s value to make up for shortfalls. 

4. Get Ready for Transition

A smooth transition makes things easier for both you and the buyer. Ask yourself:

• Do I have a solid plan for who will take over?
• Can the business thrive without me?
• Are financial records and procedures well-documented?

Start handing off responsibilities to trusted employees and putting clear systems in place. A business that runs smoothly without the owner is much more appealing to buyers.

5. Seek Professional Guidance

Selling a business involves many moving parts—valuation, taxes, legal considerations, and negotiations. A financial advisor can offer insights on structuring the deal to align with your goals, while an attorney can help navigate the legal aspects.

Working with a team of professionals can provide guidance in identifying potential buyers, evaluating tax implications, and negotiating terms that align with your long-term financial plans. 

Fully Prepare to Sell Your Business With CGN Advisors

At CGN Advisors, we’re a fee-only financial advisory firm that helps business owners make smart financial moves. Whether you’re preparing to sell or just weighing your options, we offer guidance that puts your needs first.

To schedule a meeting, call our Manhattan, KS, office at (785) 340-3434 or our Rogers, AR, office at (479) 335-1034.

About Lindsay

Lindsay Adams is a Lead Advisor at CGN Advisors, a Fee-Only, financial advisory firm based in Manhattan, Kansas. She is a CERTIFIED FINANCIAL PLANNER® professional and holds the Certified Farm Succession Coordinator designation. In her role, Lindsay aims to walk alongside her clients as they navigate financial decision-making, and she loves seeing them accomplish their goals with actionable steps and experience the financial freedom to do what their heart desires. With a mission to serve others, she genuinely cares about what goes on in her clients’ lives, the big and the small, beyond the financial.

Lindsay graduated from the Personal Financial Planning program at Kansas State University with a minor in business. Prior to joining CGN as an Associate Advisor, Lindsay gained experience in different aspects of the financial services industry. She worked in banking during high school and college and helped fellow students at a financial counseling on-campus job, which showed her many different ways people interact with money and spurred a desire to assist others in financial planning. Outside of work, Lindsay is active in her church, enjoys singing and being outside, whether running or hiking, and spending time on the farm. She’s always looking forward to the next travel adventure. To learn more about Lindsay, connect with her on LinkedIn.

Investment advisory services are offered through CGN Advisors, LLC, a fee-only SEC registered investment advisor. Tel: (910) FEE-ONLY. 

Investing involves substantial risk and has the potential for partial or complete loss of funds invested. Investments mentioned may not be suitable for all investors. Before investing in any investment product, potential investors should consult their financial or tax advisor, accountant, or attorney with regard to their specific situation. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.

The opinions expressed herein are those of certain CGN Advisors, LLC personnel and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to revision due to changes in the market or economic conditions and may not necessarily come to pass. Any opinions, projections, or forward-looking statements expressed herein are solely those of the author, may differ from the views or opinions expressed by other areas of the firm, and are only for general informational purposes as of the date indicated.