90-Day Exit Prep Checklist

Don't list until you read this.

Most sellers call a broker and say "I'm ready to sell." They're not. Their books are a mess. Their operations depend entirely on them. These issues kill deals or cost you tens of thousands in a lower price.

This checklist is what to fix in the 90 days BEFORE you go to market.

Days 1-30

Financial Cleanup

Week 1: Organize Records

Gather 3 years of federal tax returns
Compile monthly P&L statements (last 24 months)
Collect bank statements (last 12 months)
List all accounts receivable with aging
Document any outstanding debt

Week 2: Clean Up Books

Separate personal expenses from business expenses
Document add-backs clearly with receipts
Reconcile P&L with tax returns
Get current on any late vendor payments

Week 3-4: Calculate SDE

Start with net profit from tax return
Add back: owner salary, benefits, personal expenses
Add back: one-time expenses
Calculate SDE for each of last 3 years
Research multiples for your industry

Days 31-60

Operational Improvements

Week 5: Reduce Owner Dependency

Document every process only you know
Buyers pay more for businesses that run without the owner
Train at least one employee on each critical function
Create written SOPs for daily, weekly, monthly operations
Track time spent working IN vs ON the business

Week 6: Address Customer Concentration

Calculate % of revenue from top 5 customers
If any customer is >20%, develop diversification plan
Document customer relationships and contracts

Week 7-8: Lock Down Key Employees & Assets

Identify employees critical to operations
Consider retention incentives if needed
List all equipment with condition, age, value
Note anything needing repair or replacement

Days 61-90

Deal Readiness

Week 9: Review Your Lease

Check remaining term (buyers want 5+ years)
Bad lease terms kill more deals than anything except bad financials
Understand assignment requirements
Negotiate extension BEFORE listing if needed

Week 10: Legal Cleanup

Resolve any pending litigation or disputes
Confirm all licenses and permits are current
Review vendor contracts for transferability
Check for any liens on business assets

Week 11-12: Prepare Your Story

Write down why you're selling (honest version)
Document the growth opportunity for a new owner
Prepare answers for tough questions
Interview 2-3 business brokers

What NOT to Do Before Selling

×Make major changes (new systems, locations, products)
×Fire people (even underperformers, creates instability)
×Sign long-term contracts (buyers want flexibility)
×Tell everyone (confidentiality matters)
×Stop investing (buyers notice when you "coast to the exit")

Quick Wins That Boost Value

Action	Impact
Clean up financials	+0.5x multiple
Document processes	+0.25x multiple
Extend lease to 5+ years	+$10K-$50K+ value
Reduce owner hours	+0.5x multiple
Fix deferred maintenance	Eliminates negotiation points

After 90 days of preparation, you'll command a higher multiple, attract serious buyers, close faster, and keep more of the sale price.

HedgeStone Business Advisors | hedgestone.com | (561) 593-3711

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What NOT to Do Before Selling

Quick Wins That Boost Value