Preparing a Facilities Business for Sale: A Principal's Checklist

The difference between a successful transaction and a failed one often comes down to preparation. Businesses that go to market before they are ready face extended timelines, valuation erosion, and in many cases, deals that fall apart in diligence.

Financial readiness is foundational. GAAP-compliant or GAAP-adjacent financials, audited or reviewed by a reputable firm, are increasingly expected by institutional buyers. Clean books with clear add-backs, documented support for adjustments, and three years of historical performance are the baseline.

Operational documentation matters. Standard operating procedures, organizational charts, employee handbooks, and vendor agreements should be organized and current. Buyers will request these materials, and the professionalism of your presentation influences their perception of the business.

Contract review is essential. Customer agreements should be reviewed for assignment provisions, termination rights, and renewal terms. Surprises in customer contracts kill deals.

Management continuity needs to be addressed. If key people are departing with the owner, that needs to be disclosed and planned for. If they are staying, retention arrangements should be considered.

Legal and regulatory housekeeping cannot be deferred. Entity structure, insurance coverage, permits and licenses, and any outstanding litigation or disputes must be clean or clearly disclosed.

Finally, realistic expectations are critical. Valuation expectations should be grounded in market data and financial performance, not aspiration. Entering a process with unrealistic expectations wastes everyone's time and often damages the business in the process.