In the Exit Planning Institute’s 2025 National State of Owner Readiness Report, they found that only 22% of baby boomer business owners had a formal, written business transition plan. When owners are not prepared emotionally, operationally, or financially for the scrutiny that they will receive from buyers and lenders, the sale process can become intensely grueling.

We are Calder Capital, a nationwide M&A Advisory firm headquartered in Grand Rapids, Michigan. We serve business owners and buyers across industries and have closed well over 330 deals since our founding in 2013.

If you have time to prepare your business for sale, it can be time well spent. And if you are looking to sell promptly, we can help you position the business to be as attractive as possible. Here are the following tips for improving your business value, setting attainable exit planning goals, and making the eventual transition as smooth as possible. Our goal is to make the most of your time, maximize your sale outcome, find the best buyer for your business, and place you in the strongest position possible at the negotiating table.

Beyond price, the right buyer and deal structure matter just as much. An offer with strong cultural alignment, realistic transition expectations, and clean terms often results in a better outcome than a higher headline price burdened by earnouts, excessive seller financing, or post-close risk.

1: Make the business less reliant on you, if possible

As the owner, are you doing 2-3 jobs? Could you delegate or create a position for hire, thus relieving yourself of certain responsibilities?

Your ability to transition efficiently out of your business is directly tied to your level of involvement in the day-to-day operations and oversight of the business. Additionally, businesses that are less reliant on their owners are generally more attractive to buyers because those companies have de-risked themselves from key-man involvement. While it certainly can seem risky both operationally and monetarily to make hires prior to a sale, more often than not, those hiring costs are easily recouped with increased buyer competition for a business that is less owner reliant.

2: Clean up the company’s financials

Eliminate as many extraordinary and discretionary expenses as possible.

You may not want to read this, but it’s true. For companies with <$1M in earnings, as you get closer to a sale, purposefully show strong profits on your tax return.  Yes, you will pay more taxes, but showing strong profits not only increases buyer confidence in the earning power of your business (which should increase the price), but it is also practically necessary for lenders to see profits on a tax return to get comfortable financing a transaction.

If your company has >$1M+ in earnings, invest in a Quality of Earnings (QoE) analysis. A QoE analysis is an independent, institutional buyer-grade review of a company’s financials that normalizes earnings by separating sustainable operating profit from one-time, discretionary, or non-recurring items. It’s important for owners to obtain one before a sale because it reduces surprises, builds buyer confidence, and often increases valuation by proactively supporting EBITDA and minimizing last-minute retrades.

Lastly, if you are running personal or discretionary expenses through your business, keep track of these expenses and maintain records such as invoices and receipts related to them. If they can be substantiated, they may help you boost your company’s value.  

3: Improve operational presentation.

First impressions are critical.

Keep up on regular maintenance and capital improvements, so your equipment is always operating well. We understand that it can be tempting to delay maintenance or capital investment once you know you are going to sell; however, buyers are savvy, and they will notice. Conversely, for companies that continue to invest in a quality operation, buyers notice, and they will be more likely to submit offers, which bolsters competition and valuation.

If you have unused equipment, consider selling it off prior to the sale. Buyers assume that any equipment on the balance sheet/depreciation schedule will be theirs in an acquisition. Selling off unused equipment prior to marketing the business gives you the opportunity to take more from the sale, and it makes the sale process run more smoothly.

4: Optimize inventory and working capital.

If inventory is a big part of your working capital, make sure that your financials reflect an accurate level of inventory necessary to operate the business.

It is common that inventory numbers on the balance sheet are not reflective of the actual inventory in the business.

Many buyers will set a working capital peg or an average level of working capital that they expect to remain in the business at closing. Inventory is one component of this calculation. If your inventory levels are inflated or inaccurate, the buyer’s target working capital peg will be wrong – but defensibly so, and likely in the buyer’s favor.

If an owner keeps more inventory in the business than is required, it is a good idea to sell off, reduce, or write off inventory levels before and during the sale process. This demonstrates that the actual working capital needed for the business to operate effectively is lower than the dated financials will show. If these things are not done, the buyer has a strong argument for a higher working capital peg, and there is little that you, your broker, or CPA will be able to do to argue against it.

5: Establish your team of advisors

Outside of Calder Capital as your M&A Advisor, make sure to interview and then engage an experienced CPA, Financial Advisor, Attorney, Lender, etc., as applicable.

Your deal team is critical to a smooth acquisition and transition process.

Conduct a legal and organizational audit with your legal counsel to ensure all potential risks to the buyer have been identified and addressed.

Make sure all leases, licenses, and other third-party agreements are in place and enforceable. Review the company’s internal systems, processes, and procedures to make sure a buyer can get up to speed quickly.

Ready to take the first step? We recommend a thorough market-informed business valuation of your company before you begin speaking with buyers.

About Calder Capital

Founded in 2013, Calder Capital is a cross-industry mergers and acquisitions advisory firm with offices across the United States. Calder provides valuation, sell-side, and buy-side services. We are nationally recognized for excellence in advising $1-100M enterprise value transactions in manufacturing, construction, distribution, and business services. Calder serves business owners, entrepreneurs, family offices, financial buyers, and investors. Learn more at www.CalderGR.com.