Selling a business is one of the biggest financial decisions you’ll ever make. But according to business broker Tatiana DeMoraes, far too many owners wait until they’re “ready” to sell—only to find out they’re late to the game.
“Statistically, only about 13% of businesses that go on the market actually sell,” she explained. “That number is shockingly low, and much of it comes down to lack of preparation.”
So how do you avoid being part of the 87%? Tatiana shared some key steps every business owner should know.
Start Sooner Than You Think
“The perfect time would be three years before you plan to list,” Tatiana said. That’s because most banks value a business based on the last three years of cash flow. Cleaning up your financials early, putting processes in place, and strengthening revenue streams can make a dramatic difference in valuation.
Waiting until you’re “done” is a mistake: “If you wait until you’re ready, you’re usually mentally checked out. And that shows. You have to keep your foot on the gas all the way to closing.”
Clean Up the Books
There’s a big difference between running financials to minimize taxes while you’re growing your business vs running financials when you’re looking to sell your business and attract buyers. “A bank is not going to finance a business with a ton of personal add-backs,” Tatiana explained. “If the bank won’t finance it, that means you’re the bank—and you’re stuck with seller financing. That could mean the difference between walking away at the closing table with 90% of your money vs 20-50%.”
Translation: clean financials don’t just help your accountant; they make your business marketable.
Build Beyond Yourself
One of the biggest red flags buyers see? When the owner is the business.
“You don’t want to be responsible for more than 20% of sales, production, or client relationships,” Tatiana advised. Bringing key employees into leadership roles and creating processes that transfer easily to new ownership make a business more attractive—and less risky.
Lock in Assignable Contracts and Recurring Revenue
Buyers want to know revenue will continue after you’re gone. Contracts with assignability clauses, recurring memberships, or ongoing service agreements can all boost value.
“Something as simple as a dog-waste cleanup company has higher value if it’s built on recurring revenue,” Tatiana noted. “It’s about predictability.”
Know What It’s Worth—Now
Tatiana is often surprised at how many owners don’t know their current valuation. “If you don’t know what your business is worth, how do you know if it’s enough?” she said. A valuation gives you clarity, whether you’re ready to sell in one year or ten.
And sometimes, knowing the number sparks creative strategies. As an example, Tatiana recalled one couple whose 30-year business was valued at $900,000—far less than they needed to retire. With guidance, they purchased a complimentary business, doubled profits in two years, and eventually sold the combined operation for $4.5 million.
Don’t Do It Alone
Selling a business isn’t just about listing it. It’s about pairing the right seller, the right buyer, and the right lender. “It’s a puzzle,” Tatiana said. “And a good broker knows how to fit all the pieces together.”
The good news? Financial advisors, CPAs, attorneys and brokers can work as a team to help owners prepare. Understanding the tax implications of a sale, structuring the deal appropriately, and keeping growth on track until closing are all critical.
Remember…
Selling a business isn’t something you do overnight. It requires planning, strategy, and the right partners. Whether your timeline is three years or ten, start laying the groundwork now.
As Tatiana put it: “You don’t decide to retire one day and expect your retirement account to be full. Selling a business works the same way—you plan for it.”
Tatiana DeMoraes is a Senior Business Broker and Partner at Transworld Business Advisors with a background in commercial real estate and a track record of over 30 successful acquisition transactions in the past five years.
With deep experience across multiple industries, including trades electrical and construction, manufacturing, private schools, retail, legal firms, and property management, she brings strategic insight and practical expertise to every deal.
Known for a hands-on approach, strong negotiation skills, and a commitment to client success, Tatiana specializes in helping business owners maximize value and navigate smooth, confidential exits.
In her free time, she is a self proclaimed skier, foodie, and lover of her enormously large dog, Walter.