Before selling a company, a seller should seriously reflect and answer a core set of questions to clarify goals, reduce risk, and maximize value. These questions help anticipate issues and prepare for a smoother process.
- Why am I selling
- Am I ready to exit completely or just reduce involvement?
- Is this driven by age, burnout, strategic timing, or external pressures?
- Am I selling proactively or reactively?
- Am I emotionally ready and committed to sell?
- Am I prepared to let go of control, legacy, and identity?
- Have I thought about what I’ll do next?
- How much do I need or want from the sale?
- What’s my minimum acceptable price?
- Have I done personal financial planning to understand my post-sale needs?
- Is this sale enough to support my retirement or next ventures?
- What is my business really worth?
- Have I had a professional valuation or fairness opinion?
- What are comparable businesses selling for?
- Am I willing to accept market value if it’s lower that I hoped?
- Is my business ready for due diligence?
- Are my financials clean and up-to-date (preferably attested)?
- Are contracts, leases, intellectual property, and HR files in order?
- Are there unresolved legal, tax, or operational risks?
- Who are my likely buyers?
- Will this be a strategic buyer, private equity firm, or internal succession?
- What kind of buyer fits best with my company’s culture, vision, or employees?
- Do I care what happens to the business after I’m gone?
- What will I need to do post-sale?
- Am I expected to stay on temporarily for transition?
- Will there be an earnout, seller financing, or retained equity?
- Do I want to stay involved – or fully exit?
- What are the tax implications of a sale?
- Will I benefit more from a stock sale or asset sale?
- Should I set up trusts, QSBS planning, or charitable vehicles pre-sale?
- Do I need to engage a tax advisor now to structure the deal wisely?
- Do I have the right advisory team in place?
- Do I have a trusted M&A advisor/investment bank, attorney, accountant, and wealth manager?
- Who is helping me maximize value and protect my interests?
- Do they work well as a team? Who is the primary leader?
- Is now the right time to sell?
- Is the business at peak value or heading into a downturn?
- Are market and economic conditions favorable?
- Would waiting increase or decrease value?