7 Key Steps Older Business Owners Should Do Before Selling Their Business

If you're an older business owner, retirement may be on your mind. After years of hard work, you deserve a smooth and profitable exit. 

But here’s a reality check—80% of businesses that are listed for sale never sell!

Even more concerning, based on my experience and confirmed by Forbes, 90% of business owners won’t get their desired price without help.

With older entrepreneurs owning over half of American businesses, there’s a surge of owners looking to sell right now so the competition is fierce. If you want to be in the 20% of businesses that do sell—and sell well—you will need to have a profitable exit plan.

What I have discovered over the past 15+ years of helping business owners increase profitability to maximize their company’s value, there are seven must-know and proven strategies to make your business attractive to buyers and maximize your payday:

1. Ensure The Business Can Run Without You

Buyers don’t want to purchase a job—they want a business. If your company can’t function without you, that’s a red flag for investors and lenders. The solution? Create systems and processes that allow it to run on autopilot.

• Document your Standard Operating Procedures (SOPs)

• Cross-train employees to handle key roles

• Set up and use automation where possible

Quick Action Tip: Start delegating key responsibilities now. Buyers want a business that won’t crumble once you step away. You need to remember that even though you may have built the business you are not the business and a buyer needs to know it will function well without you.

2. Establish Predictable and Recurring Revenue

From the companies we’ve helped over the years, an important model to boost your company’s valuation and attract serious buyers is to ensure your company has some form of standard or creative monthly recurring revenue (MRR) model. 

A business with stable, predictable income is far more attractive than one dependent on fluctuating sales. Recurring revenue—like memberships, subscriptions, or long-term contracts—makes buyers feel more confident in future profits and minimizes the risk of the acquisition.

Quick Action Tip: Consider implementing standard models such as service contracts, a subscription model, or loyalty programs to lock in a steady stream of revenue.

3. Have A Diversified Customer Base

I’ve seen business listings stay on the market for years or businesses close down due to the lack of customer diversification keeping buyers away. If one or two clients account for most of your revenue, buyers will see that as a HUGE risk. Losing just one key customer because of the sale of the company could devastate the business and the buyer’s ROI.

Quick Action Tip: Work on attracting a broader customer base to reduce dependency on just a few big accounts. Do not let any customer account for more than 10% of your revenues.

4. Have Clean and Transparent Financial Records 

According to many due diligence teams that we speak to, having questionable financial transactions on the books will kill the majority of deals. Buyers want clear, organized financials to justify your asking price. 

If your financial records are unclear or commingled with personal expenses, your business value drops—or worse, no one buys it. There are steps you can take to address such situations but they must be done properly.

Quick Action Tip: Get an accountant to audit your books and ensure at least three years of clean, accurate financial statements. Also, you can create a Pro forma document and strategic growth plan to support your projected future financial performance.

5. Modernize Your Operations with Technology and Automation

Businesses that use modern technology to enhance their growth plans are more efficient, scalable, and profitable. If your company still relies on outdated systems, buyers might hesitate due to potential inefficiencies or the risk of disruptions that could require them to invest additional capital. Here are a few areas you should take a look at:

• Using cloud-based accounting and CRM systems

• Implement automation tools to streamline your operations

• Ensure your website and digital presence are strong and reputable

Quick Action Tip: Upgrade your technology usage now to highlight how your business is ready to scale further under new owners and future-ready.

6. Showcase Your Company’s Growth Potential

I’ve learned that if a business is stagnant or shows no upward trend in sales and profits then buyers just aren’t interested. It’s critical to plan a profitable exit early. A business that has growth potential due to specific strategic initiatives is much more appealing to investors than one that’s stagnant. 

Buyers want to know how they can scale the growth of the company to reduce the debt load required to acquire the company. You can increase the interest in your company by showing interested buyers how your company is forward thinking and prepared to the future. You can demonstrate this through; 

• Plans to expand into new markets

• Introduction of new products or services

• Maximizing marketing strategies and tactics to increase sales

Quick Action Tip: Create a comprehensive growth plan that shows buyers exactly how and what they can do to expand revenue and profits.

7. Increase The Lifetime Value of A Customer and Maximize Profits

One of the most overlooked ways to boost a business’s value is increasing the lifetime value (LTV) of each profitable customer. The more income you generate from existing customers, the more predictable and profitable your business becomes. Buyers love businesses that have strong customer retention and high repeat sales.

• Implement upselling and cross-selling strategies can increase your average order value

• Develop loyalty programs to increase repeat business

• Focus on customer experience to enhance satisfaction and increase the number of referrals generated

By maximizing the revenue generated from each customer over time, you increase, not just short-term profits, but also your long-term bankable income, making your business far more valuable to potential buyers.

Quick Action Tip: Identify every opportunity to increase customer spending with your company, improve retention, and maximize the profitability of every transaction.

Don’t Wait Until It’s Too Late

The biggest regret I hear from older entrepreneurs I speak with is that they wished they properly planned for their exit years earlier. Unfortunately, the profits from the sale required to maintain the lifestyle they want are often impossible since there is a “BIG GAP” between their company’s current financials and their desired exit price. 

Too often business owners wait way too long to prepare the value proposition of their company for a sale. The only way to avoid this is to start planning now so you can decrease the “GAP” and get closer to your desired exit price.

A professional business valuation will give you a clear picture of where you stand. If you’re not sure if there’s a gap between what your business is worth today and what you want to sell it for, early planning and consulting with a value optimization specialist can be helpful so you are properly informed on how to effectively bridge that gap.

The Highest Exit Prices Go to Those Who Prepare

Selling a business isn’t just about listing it on the market and hoping for the best. The best deals go to owners who prepare, optimize valuation, and make their businesses irresistible to buyers. 

Final Thoughts: Your Legacy, Your Payday

Selling your business is more than a transaction—it’s the final chapter of your legacy. You’ve spent decades building something meaningful and you deserve to exit on your terms with a maximum return on your years of effort.

The earlier you start planning, the more control you have over your exit—and your future. Whether that means more time with family, buying that dream home by the lake, or finally traveling across the world – the next chapter should be your best yet.

But it all starts with preparation. If you want to join the elite 20% who exit successfully and for top dollar, now is the time to act and start planning for a profitable exit!

About the Author

Lindsay Gill is the Co-Founder of Menture Inc., a firm that specializes in value optimization for business owners. For 15+ years, Lindsay has worked with business owners to help them improve their profitability, increase company value, and secure their desired asking price. You can reach Lindsay directly at [email protected] or through the Menture website.