Checklist: Are you Ready to Sell?
A Practical Readiness Checklist for Owners
Selling your business is often a once-in-a-lifetime event. The more prepared you are before going to market, the more leverage you have on valuation, terms, and buyer quality. Let us help you with the pieces that might be new to you! We’re happy to help!
Use this checklist to assess where you stand.
1. Financial Readiness
☐ Last 3 years of financials (P&L’s) are clean, organized, and accrual-based (or easily convertible)
☐ Year-to-date financials are current and accurate
☐ Clear understanding of EBITDA and add-backs (owner comp, one-time expenses, etc.)
☐ Revenue and margins are stable or trending positively
☐ Payer mix is well understood and documented
☐ No major unexplained fluctuations in revenue or expenses
☐ You can clearly explain your numbers to a buyer
Reality check: If a buyer can’t quickly understand your financial story, they will discount your value.
2. Operational Stability
☐ Business runs without daily reliance on you
☐ Strong leadership team or second layer of management in place
☐ Key processes are documented (clinical, billing, intake, compliance)
☐ No over-reliance on a single employee, referral source, or contract
☐ Systems (EHR, billing, HR) are organized and scalable
Reality check: Buyers are not just buying performance—they’re buying sustainability.
3. Compliance & Risk
☐ Licenses, certifications, and accreditations are current
☐ No outstanding audits, sanctions, or regulatory issues
☐ Policies and procedures are documented and followed
☐ HIPAA and data security practices are in place
☐ Clean billing practices with minimal risk exposure
Reality check: In healthcare, compliance issues can kill a deal late in the process.
4. Growth Story
☐ Clear narrative on how the business has grown
☐ Defined opportunities for future growth (services, geography, payer contracts)
☐ Ability to articulate why a buyer would want your company
☐ Market positioning is strong and differentiated
Reality check: Buyers pay for future upside, not just past performance.
5. Customer & Revenue Quality
☐ No single client or contract represents outsized risk
☐ Referral sources are diversified and stable
☐ Contracts (if applicable) are transferable or assignable
☐ Strong reputation in your market
Reality check: Concentration risk = lower valuation and tougher negotiations.
6. Team & HR
☐ Key employees are identified and likely to stay post-transaction
☐ Compensation structures are documented and market
☐ No major HR issues or pending disputes
☐ Clear org chart and defined roles
Reality check: Buyers want continuity. If your team walks, so does value.
7. Legal & Structural Readiness
☐ Clean corporate structure (no ownership confusion)
☐ All contracts are accessible and organized
☐ No unresolved litigation or major legal exposure
☐ You understand whether a stock or asset sale is likely
Reality check: Messy legal structure slows deals and creates re-trade risk.
8. Personal Readiness
☐ You know your “why” for selling
☐ You have a realistic valuation expectation
☐ You’re prepared for due diligence (time, transparency, scrutiny)
☐ You’ve thought about your role post-sale (stay, transition, exit)
Reality check: Deals fall apart when founders aren’t aligned with their own goals.
9. Market Readiness
☐ You have an advisor to help identify the best buyer for you
☐ You’ve identified a lawyer with experience in M&A and your healthcare vertical
☐ You are ready to pass the business off to the next owner
Reality check: Deals are a transaction for most buyers. Sellers need to prepare to let go.
10. Advisory Support
☐ You have (or are considering) an experienced M&A advisor
☐ You understand the process from valuation through closing
☐ You have support for positioning, buyer outreach, and negotiation
Reality check: Most healthcare owners only sell once. Buyers do this every day.
Scoring Yourself
80–100% checked: You’re likely market-ready
60–80%: Close, but having the right advisor will be important
Below 60%: You may want to spend some time with an M&A readiness advisor who can help you prepare- take your time!
