Answers Hub · 3 answers

Preparing to sell

Getting ready, on your timeline.

When should I start preparing to sell?

Short answer

Ideally two to three years before you want to sell. Most value is lost to issues that were fixable a few years earlier.

What to know

Clean numbers take at least a year of history.
Reducing owner dependence takes time.
Starting early means you sell when you choose.

What to do next

1Get your number today.
2List the issues a buyer would find.
3Fix the biggest ones first.

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What happens in due diligence?

Short answer

After you accept an offer, the buyer reviews your financials, contracts, team, tax and legal matters in detail. Surprises found here are the most common reason prices drop.

What to know

It usually takes 60 to 120 days.
A quality of earnings review tests your profit.
Anything undisclosed becomes a reason to renegotiate.

What to do next

1Build a data room before you go to market.
2Run your own review first.
3Disclose known issues early.

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What documents will a buyer ask for?

Short answer

Expect corporate records, 3 years of financials and tax returns, key contracts, employee agreements, IP ownership and insurance. The goal is to open a data room within 48 hours.

What to know

Missing documents are findings in themselves.
Contracts with change-of-control clauses need early attention.
Organize by area with a master index.

What to do next

1Work through the diligence checklist.
2Note anything you cannot find in 48 hours.
3Close those gaps first.

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Last reviewed September 2026 by the Horizon team. General information, not legal, tax or financial advice.

New answers, every Thursday.