A business is rarely ready to sell the moment its owner decides to step away. The decisions that shape a successful outcome, from building the right leadership team to strengthening financial reporting, often begin years earlier.
Gary Rabishaw, Managing Director at Intrepid Investment Bankers, recently joined The Flywheel Effect podcast to discuss how business owners can build value and prepare well before a potential transaction. Drawing on more than 25 years of investment banking experience, including his work with companies across the A/V and CEDIA market, Gary shared a practical test for transaction readiness: Is the company ready? Is the market ready? Is the owner ready?
Build a Business That Can Operate Without You
A buyer wants confidence that the business can continue performing after a transaction. If every decision, customer relationship, and responsibility still runs through the owner, that can create concern.
Gary explained that enterprise value comes from creating a company that exists beyond its founder, supported by capable leadership, diversified revenue, and reliable processes. Because that transition takes time, owners should begin delegating well before they plan to sell.
Invest in the Financial Foundation
Buyers expect accurate historical results, credible projections, and timely answers during due diligence. Weak reporting can create concerns even when the underlying business is performing well.
“Somebody would rather buy a Mercedes than hire a CFO when you’re at that level. And I can tell you the CFO is going to buy you 10 Mercedes later.”
The point is simple: investing in strong financial leadership and reliable reporting can help owners manage growth, withstand buyer scrutiny, and reduce the risk of surprises during a sale process.
Tell the Right Story to the Right Buyer
The same transaction story will not resonate with every buyer. A private equity firm may focus on infrastructure and growth potential, while a strategic buyer may value a brand, technology, customer base, or capability that complements its business.
As Gary explained, the key is “telling the right story to the person who wants to hear it in the right way.” The story should show what makes the company valuable without reinforcing dependence on the founder.
Are the Company, the Market, and the Owner Ready?
Before beginning a sale process, Gary considers three questions:
- Is the company ready? Does it have the financial performance, infrastructure, leadership, and scale required to support a transaction?
- Is the market ready? Are credible buyers actively looking for this type of company, technology, or capability?
- Is the owner ready? Does the owner have realistic expectations and the personal readiness to complete a sale?
For many founders, owner readiness is the hardest part. A business can represent years of work and personal sacrifice, so preparation requires realistic expectations and clarity about what comes next, not just strong financial results.
Preparation Creates More Options
Building leadership, strengthening reporting, and reducing founder dependence take time. Even when a sale is not imminent, these investments can create a stronger business today and give owners more control over timing, valuation, and buyer selection later.
Listen to the full episode, “Sell Smart, Not Fast,” on Apple Podcasts.