“I’m Just Not Ready…”

As a business owner, I’m focused every day on keeping things running—solving customer problems, managing employees, dealing with vendors, and putting out fires. With everything on my plate, thinking about selling my business someday just isn’t a priority. I hear this sentiment often from owners who aren’t mentally ready to step away—and that’s completely normal.

But here’s the reality: preparing years in advance, even if you don’t plan to exit anytime soon, can make a substantial difference in the outcome when you are ready. Taking the time now gives you options, leverage, and peace of mind later. Consider the following:

• Business Structure Matters: If your business is a C-Corp and the eventual sale is structured as an asset sale (as many are), you could face double taxation. Transitioning to an S-Corp can help—but the IRS requires at least five years of S-Corp status before certain tax advantages fully apply.
• Financial Reporting: You might be fine with internal reports today, but buyers expect clean, well-prepared financial statements. Poor financials can reduce your company’s value or kill a deal entirely.
• Management Depth: A business that can’t run without the owner is far less valuable. Building a strong, experienced management team takes time, but it’s one of the most powerful ways to increase enterprise value.
• Financial Readiness: It’s not just about being mentally prepared—you also need to be financially ready. That means understanding your post-sale lifestyle needs and building a plan that gives you flexibility when the time comes.
• Other Key Areas: Sales processes, marketing strategy, profit margins, customer concentration, supply chain risks, environmental exposure—these all impact valuation and deal certainty.

The key takeaway? Time is on your side—if you use it wisely. Preparing early doesn’t commit you to selling. It simply gives you control over when and how you exit—and ensures you do so on your terms.

Our Exit Advantage™ program is specifically developed to help business owners prepare for an eventual sale.   Contact us today to learn more.

Steven Pappas, M&A MI
Partner, Managing Director
Touchstone Advisors
860-669-2246
spappas@touchstoneadvisors.com