Unlocking the Secrets to a Profitable Business Exit: How to Prepare for the Sale You Deserve

When it comes to selling your business, hope is not a strategy—and most founders find this out far too late.

According to Lani Dickinson, former Fortune 175 CEO and founder of Freedom To Exit, four out of five businesses listed for sale are unsellable. Whether your dream is time and location freedom, or a multi-seven-figure exit, the actions you take today directly determine your ability to cash out tomorrow.

Let’s dive into the critical components that make your business truly exit ready—so you can stop working in your business and start profiting from it.

Buyers Want a Business, Not a Job

The first truth Lani shares? Today’s buyers aren’t looking to buy themselves a full-time job. They’re looking to invest in a machine that prints cash—without them needing to clock in.

That means:

• Your business must generate enough profit to support the buyer’s lifestyle.

• It must cover debt payments if they’re financing the purchase.

• And it should have clear potential for growth.

👉 If your business can’t support that model, it won’t attract serious offers.

The Magic Numbers: $1M and $10M

There are two key thresholds that buyers consider:

• $1M in Seller Discretionary Earnings (SDE) for person-to-person transactions.

• $10M in EBITDA for institutional buyers (like private equity firms).

Your exit planning should include hitting one of those benchmarks depending on your ideal buyer.

Is Your Business Self-Running Without You?

This is non-negotiable.

Buyers want businesses with strong teams who stay post-sale. Your team should be fully capable of running daily operations, making decisions, and growing the company—without you in the picture.

🔑 If your business needs you to function, it’s not sellable. It’s a high-paying job.

Margins Matter: Why ROI Beats Revenue

Profitability is more important than revenue. Buyers compare your business to other investments. If the stock market offers 7% returns, why would they invest in a business earning 5%?

Build high-margin operations that show a strong return on investment (ROI). That’s where you win.

Predictable Sales Systems and Recurring Revenue

Want a higher exit multiple? Install a sales machine.

• Your sales should be predictable, repeatable, and documented.

• Each phase of the sales process should be optimized.

• Best-case scenario: You have recurring revenue (like subscriptions or retainers).

💸 Every $1 of Monthly Recurring Revenue (MRR) can be worth $2 or more in valuation.

Documented Systems = Higher Value

Most entrepreneurs hate SOPs (Standard Operating Procedures)… but they’re critical for building a transferable asset.

Buyers want to see:

• Key systems documented and optimized.

• Measurable KPIs and OKRs.

• Bonus: Tying leadership compensation to KPIs increases performance and perceived value.

Growth Mindset: Your Past and Future Matter

Growth is essential—not just in the past, but into the future.

Buyers want:

• A documented history of year-over-year growth.

• A clear growth plan showing how their investment can accelerate expansion.

This future pacing drives both confidence and valuation.

Diversify Customers and Suppliers

Buyers run from risk. If 80% of your revenue comes from two clients, or you rely on one supplier, that’s a red flag.

You need:

• A broad customer base.

• Supplier diversity.

• Strong customer relationships backed by a Net Promoter Score (NPS) system.

Happy, loyal customers that refer others increase both valuation and trust.

No One Wants Your Real Estate or Old Machines

Buyers typically don’t want real estate or outdated capital equipment.

If your operations rely heavily on old infrastructure, expect a valuation discount. Keep your capital investments modern, lean, and flexible.

Know Your Numbers—or Get Help

This is where many founders fall short. Only 35% of owners get their financials regularly, and less than 5% actually review them.

🔍 To sell your business:

• Get a great bookkeeper and a CPA.

• Transition to audited financials.

• Be ready to provide a Seller Quality of Earnings report.

You must be able to clearly show and defend your numbers.

What Makes You Different? Your Brand Story Matters

What’s your competitive edge? Do you have:

• Trademarks?

• IP?

• A proprietary process?

• A powerful brand narrative?

Your brand DNA tells the buyer whether your business has longevity. The more differentiated you are, the more attractive (and valuable) you become.

Final Thoughts: Prepare to Exit for More

Lani sums it up perfectly: whether you want freedom now, or to sell for top dollar later, the steps are the same.

Start treating your business like an investment someone else will want to buy. Because eventually, they will—or they won’t.

And that decision starts today.

Free Resources to Go Further:

📌 7 Ways AI Can Boost Your Sales and Save You Time – Download this free guide: https://ai.activatetoascend.com/get-7ways-ai

📌 3 Ways Your Business Can Use AI TODAY to Stop Leaking Money – Save your seat for the free live webinar: https://webinar.activatetoascend.com/webinar-register-general