Graham’s Guide Chapter 1:
Twelve Months Before Selling
The idea that changes everything
Most business sales don’t begin with a meeting. They begin with a thought.
The ideal business sale begins long before anyone knows the business is for sale. If you’ve given yourself twelve months to prepare, you’re already ahead of many sellers.
The seven reasons owners decide to sell
· Retirement: A well-planned retirement sale often produces the best outcomes because there is time to prepare properly.
· Burnout: Running a business can be relentless. Burnout can affect an owner’s ability to negotiate and perform during the sale process.
· Health: Urgency caused by health issues can affect both value and negotiating strength.
· Opportunity: Many owners simply want to pursue a new challenge, investment or lifestyle.
· Family succession: Increasingly, children choose different careers. Recognising this early creates more options.
· Partnership changes: Changing goals or relationships can make a sale the best solution.
· Market timing: Strong industries attract stronger buyer demand and better prices.
Graham’s Tip
The best time to sell is usually when you don’t have to. Owners who choose to sell have options, and buyers can sense the difference.
The biggest misconception
Many owners believe they should start preparing once the business is listed.
In reality, preparation starts the day you first think about selling. Every unresolved issue increases perceived risk, and every risk reduces value.
A year sounds like a long time…
Financial statements need to be prepared. Systems documented. Key staff retained. Leases reviewed. Equipment maintained. Profit improved. Tax planned. Professional advisers engaged.
Giving yourself a year gives you choices, and in business sales, choices are valuable.
The question every owner should ask
Instead of asking, ‘How much is my business worth today?’, ask, ‘What could my business be worth in twelve months if I deliberately prepared it for sale?’
That shift in thinking changes everything.