The day will eventually come for most business owners when it’s time to sell the company they spent many years building. But selling a privately held business is more than just a financial transaction — it is a pivotal moment when owners have an opportunity to reimagine their purpose and personal legacy.
This makes it critical to prepare well in advance for the sale of your closely held business. Here are four steps you can take to prepare for a business sale:
1. Allow Enough Time for the Sale Process
The number one regret listed by owners who responded to the 2025 Insights for Private Business Owners Report, Mastering the Sale, was not starting to plan for the sale sooner. Four out of 10 respondents said they wished they had engaged in estate and tax planning further in advance (40%) and given themselves more time to accomplish all the tasks necessary for the sale (38%).
It’s generally recommended that owners start preparing for a business sale at least two years before they plan to exit the business. One survey respondent said the sale process took more than two years to complete, but “it felt like a flash. I would advise others to allow yourself enough time to get ready.”
2. Assemble an All-Star Deal Team
Putting together a capable deal team will help ensure a smooth transaction, stronger offers and better tax treatment on the sale. Core team members usually include the investment banker, financial advisor, M&A attorney, trust and estate attorney, and CPA. We also recommend that business owners consider engaging wealth strategists or investment managers to help plan for their financial future after the sale.
The right deal team members will possess connections, networks and industry knowledge that may prove invaluable in the business sale process. “You want advisors close to you who know your business and your family,” says BNY Wealth Senior Wealth Strategist Heather B. Cheney. She encourages owners to meet regularly with their team and leverage team members’ expertise, “which is greater than the sum of its parts.”
3. Optimize the Business for Sale
Your goal should be to make the business as attractive as possible to potential buyers before it goes on the market. You can do this by boosting profitability and revenue streams and improving financial records and transparency.
It’s also important to resolve any outstanding bookkeeping issues during this stage so they don’t cause problems later. “One of the most important things clients should do before they try to solicit bids for the business is clean up their records and books and ensure everything looks good,” says BNY Wealth Senior Wealth Strategist Jere W. Doyle.
4. Plan for Cash Flow After the Sale
After the sale, owners make a transition from entrepreneur to active investor. Investors seek a steady income stream from a well-diversified portfolio, while business owners’ income is tied to the industry in which their company operates.
By implementing a thoughtful diversification strategy, owners can effectively mitigate the idiosyncratic risks associated with a single stock position. This will help unlock a smoother financial future that aligns with your personal goals and legacy aspirations.
For more, download our report 2025 Insights for Private Business Owners, Mastering the Sale.
