18 Expert Tips For Selling A Midsize Business

Selling an established company is a significant decision and a complex endeavor for any business owner. Whether the owner of a midsize business chooses to sell the business outright or plan for succession, the stakes are equally high—to succeed on either path will demand deep research, careful timing and thorough documentation.

For owners of midsize businesses looking to sell, strategic preparation is critical to ensuring the best outcomes for both buyers and sellers. Below, 18 Forbes Coaches Council members share what their top advice would be if a coaching client were an owner preparing to sell a midsize business, offering practical insights to inform a smooth exit and a mutually beneficial exchange.

1. Plan Your Personal Transition

My top advice is to start with personal transition planning alongside business sale preparations. While maximizing value is crucial, owners often overlook planning for the next chapter in their career. Understanding your next goal on the career ladder and how your business-building skills could translate into future opportunities is vital for both a successful transaction and a fulfilling transition. - Isabelita Castilho, Executive Power FZE

2. Develop A Post-Sale Ascension Strategy

Developing a post-sale ascension strategy would be essential for the long-term health and well-being of my client. Transitions without a long-term personal vision can be detrimental, especially after the smoke clears from the sale. Have a game plan for what’s next in your life so you can direct your time and resources toward your purpose and leverage the sale of the company to be a force for good. - Kevin West, Invisible Insights Inc.

3. Determine What ‘Done’ Looks Like

One thing I realized a while ago is that you can’t make someone do something they don’t want to do. If they’re finished, then they are done. With that being said: What does it look like to be done, and how can you plan backward if that’s what you want to do? There’s nothing wrong with wanting to move on—but ensure that you’re going to end up on top the best way you know how, and enjoy the journey. - Cornelius (CJ) Barnett Jr., The StanCor Group

4. Stay Grounded In Facts

Start by assessing the business’s current valuation and market potential. Engage a team of experts, including a financial advisor, a business broker and legal counsel, to guide the sale process. Develop a strategic exit plan that maximizes value while ensuring a smooth transition. Finally, identify potential buyers aligned with the business’s mission for a seamless handoff. - Dr. Ari McGrew, Tactful Disruption®

5. Thoroughly Assess The Enterprise

It is advisable to commence with a thorough assessment of your enterprise, ensuring that intellectual property, customer information and digital assets are both protected and properly appraised. Such an approach not only appeals to legitimate purchasers, but also preserves your standing during the transition period. - Damodar Selvam, Equifax Inc.

6. Reflect On Motivations, Needs And Goals

Before selling, reflect on your motivations, financial needs and legacy goals. Are you retiring, reducing stress or reacting to external pressures? Explore alternatives like succession planning, partial sales or employee buyouts. Assess whether the business is at peak value or could improve. Clarity on these factors ensures selling aligns with your personal and financial aspirations. - Stephan Lendi, Newbury Media & Communications GmbH

7. Make The Business Scalable

Make the business scalable, like a franchise. Start by thoroughly documenting how it works: Define processes, clarify roles and identify key success drivers. Then, integrate effective technology to streamline operations. A replicable, well-documented and systematized business is far more attractive to buyers, ensuring a smooth transition and strong growth potential. - Carlos Hoyos, Elite Leader Institute

8. Find A Business Broker Or M&A Advisor

The first recommended step is to engage a qualified business broker or mergers and acquisitions advisor specializing in businesses of similar size and industry. These professionals would help the owner understand the company’s market value by conducting a detailed valuation, identifying potential buyers and guiding them through the sale’s legal, financial and operational aspects. - Curtis Odom, Prescient Strategists

9. Get Guidance On Legal And Tax Implications

First, consult with a qualified M&A advisor or business broker. They can provide critical guidance on valuation, due diligence, negotiations and the complex legal and tax implications of a business sale. The advisor can also help the owner prepare the business for sale to maximize its value and ensure a smooth transition. - Jonathan H. Westover, Ph.D., Human Capital Innovations

10. Establish An Accurate Market Value

Begin with a professional business valuation to establish a clear, accurate market value. This not only ensures realistic expectations, but also highlights strengths and areas needing improvement. Use this as a strategic baseline to attract buyers and negotiate effectively. A well-prepared, transparent foundation inspires buyer confidence and accelerates the sale process. - Dr. Adil Dalal, Pinnacle Process Solutions, Intl., LLC

11. Document Processes And Define Roles

To sell a midsize business outright, start by consulting an M&A advisor or business broker to assess valuation, due diligence and legal frameworks. Build a robust growth narrative by documenting processes, defining roles and streamlining operations. Align the sale with your financial goals and buyer needs to ensure a smooth transition and gain maximum value. - Nirmal Chhabria

12. Audit The Business’s Transfer Readiness

Start by auditing your business’s transfer readiness—evaluate financials, operational processes and key assets to ensure they are transparent, organized and appealing to buyers. This step positions the business for a smoother sale and maximizes value by addressing potential red flags before buyers conduct due diligence. - Kiran Mann, M2M Business Solutions Inc.

13. Clarify Your ‘Why’

Start by clarifying your “why”—the true reason for you to sell now. If you know this, it will be your guiding star through the whole process, which may be long and complicated. It also will help you avoid costly missteps or regrets post-sale. - Nick Leighton, Exactly Where You Want to Be

14. Prepare To Detach Emotionally

How ready is the owner to let go of what they built? What if they disagree with the new owner’s direction or changes they make? Owners I have assisted through such transitions believe they can emotionally let their companies go, but they feel differently when the new owners make changes affecting the people who remained. Smooth transitions necessitate being prepared to detach from the outcome emotionally. - Barbara Anne Gardenhire-Mills, Purpose-Filled Solutions & Evolutions®

15. Detail Your Ideal Outcome

I often say that a goal well defined is a goal half achieved, so my recommended first step is always to clarify one’s ideal outcome with as much detail as possible. In this case, I would ask the owner to clarify their ideal acquisition price, type of buyer in terms of company size and culture and also their ideal timeline for completing the transaction. - Sara Conant, a)plan coaching

16. Do Your Research

Before taking final steps on selling the business, make sure you have done the research and explored what is required. Identify the pros and cons, the different options for selling the business, the market for buyers and how similar businesses handled sales of their businesses. Consult with financial and legal experts to ensure you have the information needed to proceed. - Susan Curtin, Insights4results,LLC

17. Identify Your Top Potential Buyers And Their Needs

Map your top three potential buyers and deeply understand what they need—what gaps your business fills, what unfair advantage they’ll gain and what adjustments you might need to make to meet their needs better. This strategic alignment positions your business as the perfect fit, not an option. To maximize mutual leverage, approach them head-on with this value proposition; don’t wait. - Alla Adam, Adam Impact Institute

18. Professionalize Operations

In the case of “family-run” companies, the first step is to professionalize the business as if they were handing it to a stranger, not family. Start by clearly defining roles, processes and governance structures that do not rely on familial strengths or informal decision-making. For example, replace family meetings with formal committees and set up independent leadership teams. - Thomas Lim, Centre for Systems Leadership (SIM Academy)