24 Mar How early do I need to begin to prepare to sell my business?
Ask Me Anything: The Nuts and Bolts of Selling a Business in 2025
Question:
How early do I need to begin to prepare to sell my business?
Answer:
While the old adage says you should be ready to sell from day one, a more practical timeline is three to five years before you plan to sell.
Keep in mind, this means three to five years before selling, not retiring—you will likely need to stay on and work for the new owner for a transition period.
Here is why you need that three-to-five-year runway:
- To establish financial trends: A major part of your business’s value is based on multi-year trends. You need foresight to ensure your historical P&L and Balance Sheet reflect a clean, upward trajectory.
- To handle logistics naturally: A longer timeline allows you to take care of crucial housekeeping during the normal course of business, such as securing a transferable lease during your regular renewal cycle.
During the 2024 Managing and Accounting Practice (MAP) Conference hosted by the Massachusetts Society of CPAs (MassCPAs), Beacon Equity Advisors presented an AMA (Ask Me Anything) to the CPA firm partners attending. We thought we would share some of their questions and our answers.