By: Reese Wilson, Senior Deal Coordinator
If you’ve placed your business on the market—whether independently or with an advisor—you might be wondering why buyers aren’t jumping at what you know is a successful, profitable opportunity. What makes some businesses attract buyers while others languish? As a firm, Topsail Capital Advisors (TCA) is here to shed light on why certain deals stall and how to better position your business to reach a successful transaction.
Many factors contribute to a successful sale. Advisors play a critical role in helping sellers choose the optimal time to market their business and package it effectively to attract buyers. But the business owner’s role is just as important. Let’s explore how owners and advisors can work together to increase the chances of closing a deal.
Step 1: Deciding to Sell
Making the decision to sell your business is monumental. Selling “too early” may mean missing out on potential growth and profit, while selling “too late” can mean facing market shifts that devalue the opportunity. Consulting experienced advisors who know the market can help ensure you’re not leaving money on the table by exiting at the wrong time. If it’s determined that now is the right time to sell, owners should immediately prioritize compiling comprehensive and accurate financial and business documentation.
If the recommendation is to wait, owners should still reinforce their business’s financial and operational records. Having multiple years of consistent, verifiable financial data minimizes perceived risk for buyers and strengthens the likelihood of achieving the best price when the time is right.
Step 2: Doing Your Homework
Once you’ve engaged an advisor, you’ll need to provide as much information as possible to enable effective marketing of your business. Prospective buyers, particularly serious investors, will have numerous questions—ranging from operational details, such as the strength of client relationships and management structure, to financial specifics. Without detailed, curated data, an owner risks losing buyer interest.
Topsail Capital Advisors, for example, has a structured process that ensures buyers have the resources they need to make informed decisions. We ask sellers to provide at least 3–5 years of financial statements (preferably audited), tax returns, asset lists, corporate structures, ownership breakdowns, and strategic growth plans. Compiling this information can be a daunting task, especially if you’re doing it alone, but it’s essential for an effective sale.
Step 3: Maintaining Momentum
Once your business is on the market, the process is just beginning. Some owners may think they can take a hands-off approach at this stage, but active involvement remains crucial. Your advisor will engage with dozens of interested parties, each with specific questions and concerns. Providing ongoing operational details—like contracts, client lists, key personnel information, real estate transactions, and quarterly financial updates—keeps buyers informed and helps them see the business’s growth potential clearly.
Step 4: Closing the Deal
Thanks to the combined efforts of ownership and advisory, you’re now ready to close the deal. At this stage, the buyer’s confidence in the business is strong. By providing detailed and transparent information throughout the transaction, you and your advisor have helped dispel doubts and build trust. With due diligence underway, the closing process can proceed smoothly.
Final Thoughts
Selling a business is no easy feat. There are no “free lunches” in the world of business transactions. At Topsail Capital Advisors, our goal is to support you with the insights, resources, and experience necessary to achieve the best possible outcome. You’re not alone in this journey, and TCA is here to guide you through every step.