Selling a company isn’t a moment—it’s a process. And like any high-stakes transaction, success depends heavily on preparation.

At Colonnade Advisors, we’ve seen time and again that the most successful outcomes start with a rigorous first phase: the Pre-Marketing Phase. This is where a seller lays the groundwork, evaluates the business with a buyer’s lens, and ensures the company is positioned for maximum value.

What Happens in the First Phase?

Think of this as your internal due diligence period. It’s a deep and honest assessment of your company—its financials, operations, legal structure, and market position. Done right, this phase can prevent deal fatigue down the road and minimize surprises that could derail a transaction.

Key objectives of this phase include:

• Organizing and normalizing financials: We dive into income statements, balance sheets, and cash flows to identify key drivers of performance. One of the most important steps is adjusting for any non-operational or discretionary expenses—such as personal items, family salaries, or one-time costs—to present a clean and accurate picture of profitability.
• Building a defendable forecast: If your company doesn’t already have a robust financial model, now is the time. A realistic forecast—one that’s been stress-tested across different scenarios—is essential to helping buyers understand your trajectory and potential.
• Uncovering and resolving red flags: Are there unresolved employee disputes? Customer contracts that lack clarity? Pending litigation? Early identification of risks gives you the chance to fix—or at least frame—them before buyers raise concerns.
• Documenting everything: Buyers will eventually ask for detailed data on contracts, legal agreements, intellectual property, and more. This phase is about getting organized so you’re not scrambling when the data room opens.
  

Why It Matters

Buyers are drawn to companies that are buttoned-up, transparent, and credible. The first phase of selling isn’t about polishing your story—it’s about owning it. The transparency and structure you establish now will accelerate the process, improve valuation, and increase the likelihood of a successful close.

It’s also when you, as the owner, take stock. What is your company really worth? What are the risks? What do you want from a buyer beyond just a check?

These aren’t easy questions, but the answers are critical.

Selling your business is likely the most important transaction of your life. Don’t skip the prep.

At Colonnade Advisors, we specialize in guiding business owners through each phase of the sale process. The first step? Let’s talk.