Most owners start thinking about selling when a buyer calls or when a personal situation forces the question. By then, much of what decides the price is already fixed.
Buyers pay for reliable earnings, a management team that will stay, clean ownership and contracts, and a business that does not depend on its owner. Each of these takes time. Audited accounts need a history. A strong second line of management needs years to prove itself. Related-party arrangements and informal agreements need to be cleaned up before a buyer's due diligence finds them.
When to start
We suggest you start preparing two to three years before you expect to sell, even if the timing is uncertain. The work improves the business whether you sell or not, and it lets you sell when conditions are good rather than when circumstances force you to.
A well-prepared company also negotiates from a stronger position. When the information is ready and the hard questions have already been answered, you control the pace of the sale.