By Oliver Bogner, Managing Partner — The Advisory Investment Bank
Most founders think of selling their business like selling a house:
pick a good buyer, negotiate a little, sign the papers.
In reality, selling a business is more like preparing for the Super Bowl — and the preparation determines the score long before kickoff.
If I had just 12 months to get ANY essential-service business ready for a sale, here’s exactly what I would do.
This is the same roadmap we use at The Advisory Investment Bank to help founders get 2×–4× more than the direct offers they received from private equity and strategic buyers.
1. Clean Up the Financials (This Can Add Millions)
If your books look messy, a buyer will discount — or retrade — your valuation.
Your financials must be:
✓ Accrual-based
✓ Clean, categorized, and reconciled monthly
✓ With fully documented add-backs
✓ No personal expenses intertwined
Every $1 in verified Adjusted EBITDA is worth $6–$12 in enterprise value depending on your industry.
This is the single biggest lift in the first 90 days.
2. Lock In Key Employees
Buyers want stability.
Key managers walking out the door = instant valuation haircut.
Introduce:
- Stay bonuses
- Retention agreements
- Clear leadership roles
- Delegation away from the founder
The more the business runs without you, the more buyers will pay.
3. Increase Recurring Revenue
Memberships, maintenance agreements, routes, contracts — these are gold.
Recurring revenue reduces risk and increases multiples.
A plumbing or HVAC company with 50% recurring revenue can sell for 1–3 turns higher than a project-heavy operator.
Even small increases in recurring revenue move valuation meaningfully.
4. Reduce Customer Concentration
If any single customer is more than 15–20% of revenue, buyers get nervous.
Diversify now.
Even shifting a “gorilla client” from 30% to 20% over 12 months can add one full valuation turn.
That’s millions in value for most founders we represent.
5. Build the Systems Buyers Look For
A transferable business = a valuable business.
Document:
- SOPs
- Pricing models
- Dispatch processes
- Sales workflow
- CRM usage
- Training and onboarding
Think like a franchisor.
Buyers will pay a premium for a business that scales cleanly.
6. Build a Buyer Universe, Not a Buyer Relationship
If only one buyer is at the table, you are negotiating against yourself.
If ten buyers are at the table, you are negotiating from power.
A competitive auction routinely produces:
- 20–60% higher valuations
- Better cash-at-close
- Less rollover
- Less earnout risk
- Far stronger legal terms
The right buyer isn’t the first one that calls.
The right buyer is the one who wins the auction.
7. Bring in an Advisor Before Buyers Approach You
When a buyer says:
“Let’s keep this simple — no bankers needed.”
What they mean is:
“We’d prefer to buy this below market.”
The Advisory exists for one reason:
To defend Main Street owners from being underpriced, retraded, or boxed in.
With a real process behind you, buyers compete — not negotiate.
That is how Wall Street works.
And now Main Street can use the same playbook.
Final Thought: Timing Isn’t Luck — It’s Preparation
If I had only 12 months to prepare my own company for sale, this is the roadmap I’d follow.
Because the founders who win big don’t wait for the perfect year.
They create it through:
- Structure
- Clean financials
- Leadership
- Recurring revenue
- And process
If you want help preparing, valuing, or starting a competitive auction, reach out.
The Advisory Investment Bank
Defending Main Street. Protecting founders. Delivering life-changing exits.
