When It’s Time to Sell. . .

Tropper—In most cases, an owner would be well-advised to begin preparing for sale as much as 18 months to two years prior to actually taking the business to market. Preparation for selling a business entails considerably more than providing financial statements and tax returns. In this context, we urge our clients to think of selling their businesses like selling a house—everything should be in excellent condition, or as best as possible. This takes time. We typically conduct a Divestiture Audit, where we review every single element in a business, from the account breakdowns to the balance sheet, from the condition of the equipment to the condition of the carpeting in the reception area. An owner who conducts such an audit and makes the appropriate investments will find his company considerably better positioned to sell at a higher price.