8. How to Prep a Business for Sale 12-24 Months Out
business brokers manage the sales process methodically and professionally
helping brokers become strategic advisors - not just last-minute fixers
Most business owners only think about selling when they’re already mentally done.
The problem?
By then, it’s often too late to make meaningful changes to improve the valuation or increase buyer confidence.
That’s where smart brokers step in, not when the client is “ready to list,” but when they’re ready to prepare.
🕰 Why the 12–24 Month Window Matters So Much
This lead-up time gives sellers space to -
Reduce owner dependency
Tighten up their financial reporting
Build or document key systems
Strengthen recurring revenue or retention
Resolve any hidden liabilities or disputes
All of that de-risks the deal and justifies a stronger valuation.
🎯 What Brokers Should Focus on in the Prep Window
Here are 5 key areas to guide early-stage sellers toward -
1. Clean, consistent financials
Encourage them to work with their accountant now - not at the last minute.
2. Owner replacement planning
Help them identify key-person risks and delegate or document roles accordingly.
3. Customer concentration
If one client represents 40% of revenue, it’s time to diversify - or prepare the buyer for the reality.
4. Recurring revenue or sticky customers
Lock in contracts, retention strategies, or subscription models that make the future look more predictable.
5. Clear growth narrative
The business doesn’t need to grow fast, but it does need to show how it could grow under new ownership.
🧠 Strategic Questions to Ask a "Not Ready Yet" Seller
Use these to guide the conversation and position yourself as a long-term advisor -
“If we sold your business tomorrow, what would the buyer be nervous about?”
“What parts of your business still rely heavily on you?”
“Do you know what your business might be worth today and how to increase it?”
“What story would we be telling a buyer 12 months from now if we started prepping today?”
🛠 Tools You Can Offer as a Broker
To build trust before the listing, offer value like -
A pre-sale readiness checklist
A free “mock valuation” or buyer risk scan
Introductions to specialists (accountants, exit planners, HR)
A quarterly check-in to keep the client moving
This doesn’t just show credibility - it gives sellers confidence you’re the broker to help when the time is right.
💬 Reframing Early Conversations
Many sellers think “not ready” means “not worth talking yet.”
You can shift that mindset with lines like -
“The best exits are planned. Let’s use this time wisely.”
“Even small changes now could mean a much better price later.”
“Think of this as shaping the story we’ll tell, not just waiting for the sale.”
🤝 Final Thought
If you want better listings, start earlier.
When you become a trusted guide months - or years, before a sale, you don’t just close deals. You become the first call for that seller, their network and their advisors.
If you’ve got “maybe one day” clients in your CRM, now is the time to reach out.
Let’s talk about how to turn those into tomorrow’s most valuable listings.
👉 Or reply and I’ll share a pre-sale readiness checklist you can send straight away
👉 Book a free 15-min strategy call https://www.regenerationhq.co.nz/contact
👉 Or reply to john.luxton@regenerationhq.co.nz and I’ll send you a pre-sale readiness checklist you can send straight away.