Most owners think selling a business starts when they hire a broker. But it actually should start years earlier, when they decide to get ready by getting all their ducks in a row. Being ready means having clean books, documented systems, and a plan for what happens next. Those who aren’t ready end up learning the hard way that deals die slowly and usually for reasons that could have been fixed ahead of time. I spoke with Bill Meagher about his experience as a Private Client Advisor at Bank of America. Bill advises business owners who are planning to exit, usually years before the transaction. He has come across all kinds of sellers and was happy to share what he’s learned. He told me about two clients from early in his career. One ran a medical device company and took the preparation phase very seriously. They cleaned up their financials, hired a professional team, and did a QoE review long before a buyer asked for it. The other ran a distribution business and thought that it was a waste to spend money prepping the business. The first company sold in nine months. The second took a year and a half. And, by the time it sold, the market’s had shifted, there was some deal fatigue, and the seller’s leverage had disappeared. So if you’re in the position to sell a business, don’t rush into the sale. Take some time to prepare your business in order to get a fair deal for what you’ve built. And how do you prepare? There’s too much to cover in just this article, but here’s a start based on our talk with Bill. Slow is smooth, smooth is fast There’s a lot to get done when you’re planning to sell your business. Bill’s ideal client starts preparing three to five years in advance. That timeline gives space to line everything up properly: audited financials, a quality of earnings report, a tax strategy, and a governance plan for both the company and the family behind it. Each of these steps requires a meeting with a professional and at least some back-and-forth. According to Bill, it’s better to think about the sale as a process rather than an event. That means getting the business to a point where it can run without its owners, and getting the family to a point where they are ready for what comes after. Sometimes, this work takes convincing. A lot of owners want to keep things simple or save money and would rather cut corners in this process. His answer to this is straightforward: “If you’re fine leaving money on the table, that’s up to you.” In other words, it’s going to take time to get the full value of your business. Letting go of your business The hardest part of selling is rarely financial. It’s personal. Most founders built their companies from scratch, and their identity is wrapped up in it. It can be hard to part ways with an old t-shirt you’ve had since college, let alone a business you’ve poured your heart and soul into for 30 years. Bill helps his clients navigate through this separation. He’ll sometimes even bring in executive coaches to help owners prepare for life after the sale. From the buyer’s perspective, you don’t want to acquire something that has all the company secret’s locked up in the owner’s brain. You’ll want to be sure that there are proven SOPs in place before taking over. Bill encourages people like this to focus on what he calls “You 2.0,” or the system that lets the company function without you. The goal is to turn what’s in their head into systems and processes that belong to the company, not the person. Buyers aren’t looking to hire another founder. They’re looking for something that can stand on its own. New buyers, new pressure Bill has also noticed how much the market has changed. The rise of first-time buyers has brought about a lot of new energy. These buyers are eager and often well-funded. Many of them are looking for businesses like HVAC, landscaping, and laundromats. The appeal for essential services is something I discussed in an earlier article. While that demand has been good for sellers, it’s also exposed how unprepared many of them are. Bill has fielded many calls from owners who have been approached by private equity firms but have no idea what to do next. They aren’t ready for due diligence, and they know it. That’s where he starts: assessing whether they’re “show ready.” For some, the gap can be closed in months. But for most, it takes years. Passing on the torch Bill spends a lot of his time thinking about what happens after the sale. He specializes in helping families prepare for the transfer of wealth to the next generation. This silver tsunami from the baby boomer generation to its descendants has been dubbed the largest intergenerational handoff in history. As a result, there are now regional summits for the children of clients who have sold their businesses. There, these new clients might spend a day or two meeting with bank professionals to learn how to manage wealth and get a better understanding of what it all means. A lot of times what you’ll see is the first generation founded a business, the second built it up, and now, the third generation is set to inherit the wealth. But from the perspective of the third generation, they’ve always been wealthy. So, Bill and his team help the family understand how their grandparents ran things and why the money is in a trust, etc. Bill reminds clients like these that the restrictions around trusts and family structures exist to protect the wealth that has been built up so that it can last for more generations to come. Putting the “prep” in QOE Prep We share a lot of the same values as those discussed in this article. I hope I don’t have to convince you that we believe in being prepared at QOE Prep. For us, a sell-side QoE report is a way of seeing your business through the eyes of a buyer. It helps uncover problems early and gives you a chance to fix them before they can become dealbreakers. When we work with sellers, we want them to be fully prepared for the next step in their journey to selling their business. That’s what being show-ready means. Rather than relying on luck, you’re setting up a system of preparation that compounds, just like the business you built in the first place. If you or someone you’re working with is in the process of selling your business, I’d encourage you to check out our website, where you can get a free quote on a QoE report today or set up time with me to discuss the process of getting your business ready to sell.