Top Five Things Sellers Can Do to Prepare to Sell Their Businesses

Planning to sell your company? Here’s how to make due diligence your competitive advantage. After working with dozens of business owners through M&A transactions, we’ve seen deals fall apart not because of poor business, but because of poor preparation. The due diligence process can make or break your exit.

Here are the 5 critical steps that separate successful exits from failed deals

1. Build your data room BEFORE you go to market – Create a virtual data room with everything organized and labeled. Financial statements, contracts, IP docs, employment agreements – have it all ready. Buyers notice when you’re prepared, and it sets a professional tone from day one.

2. Tell the story behind your numbers – Don’t just hand over financial statements. Create management reports that explain variances, normalize one-time expenses, and show the real earning power of your business. Transparency builds trust and speeds up buyer analysis.

3. Get your legal house in order – Compile all corporate records, material contracts, permits, and compliance documentation. Address any gaps NOW, not during due diligence. Nothing kills a deal faster than surprises that surface during buyer review.

4. Document your key relationships – Prepare detailed info on major customers, suppliers, and key employees. Include contract terms, relationship history, and any concentration risks. Buyers are acquiring relationships, not just assets.

5. Build a response-ready team – Designate specific team members for different areas and set clear response protocols. Quick, thorough responses maintain deal momentum and keep you in the driver’s seat during negotiations.

The bottom line: Well-prepared sellers maintain leverage and get better outcomes. The companies that struggle are the ones scrambling to find documents while buyers are getting impatient.

The attorneys in Byrd Campbell’s Corporate & Securities Group specialize in transactions of all sizes and prepare our clients to go to market and guide them throughout the process.