10 questions to ask yourself before selling your business

1. Why do I want to sell my business?

The first question to ask yourself is undoubtedly the most fundamental: why do you want to sell your business? This question goes far beyond simple surface-level reflection. It requires honest introspection to identify your true motivations.

The reasons for selling a business are multiple and vary considerably from one entrepreneur to another. Some motivations are positive and proactive: approaching retirement, the desire to seize an exceptional financial opportunity, the wish to take on new entrepreneurial challenges, or the desire to capitalise on record performance of your SME. Other motivations may be more reactive or negative: professional burnout, health problems, financial difficulties, family tensions, or weariness with the daily challenges of business management.

Clearly identifying your motivations for selling is crucial for several reasons. Firstly, it will enable you to make an informed decision rather than an impulsive one. Secondly, your motivation will directly influence your ability to negotiate calmly and obtain the best conditions. A seller motivated by a positive opportunity will generally have more negotiating power than a seller forced by urgency. Thirdly, understanding your deep-seated reasons will help you define your criteria for selecting the buyer and your priorities in the transaction.

Take the time to write down all your motivations, even those that seem secondary. This list will serve as your compass throughout the sale process and help you stay aligned with your initial objectives. If you identify that your motivations are primarily negative (exhaustion, escape), ask yourself whether selling is really the solution or whether there are other alternatives, such as delegating more or restructuring your organisation.

To deepen this reflection, consult our article on the 5 signs that show it's time to sell your business, which will help you identify whether your situation corresponds to the indicators of good timing for a sale.

2. Is my business truly ready to be sold?

Once your motivations are clarified, the second essential question concerns the state of readiness of your business. Wanting to sell and being ready to sell are two fundamentally different things. A well-prepared business will not only sell more quickly, but also at a significantly higher price.

Several criteria allow you to assess whether your SME is ready for sale. Financial health constitutes the first indicator: are your accounts up to date, auditable and showing a positive trajectory? Potential buyers will scrutinise your financial statements for at least the last three years. Stable growth in turnover and profitability will reassure buyers and justify an attractive valuation.

Beyond the figures, the internal organisation of your business plays a determining role. Are your processes and systems documented? A buyer must be able to quickly understand how the business operates without depending exclusively on your tacit knowledge. Documentation of operational procedures, customer relationships, supplier contracts and key processes will considerably facilitate the transition.

The question of dependence on the owner is particularly critical. If your business relies entirely on you – your customer relationships, your technical expertise, your network – its value will be greatly diminished. Buyers are looking for businesses capable of operating autonomously. Ideally, begin gradually delegating your responsibilities and building a solid management team well before the sale.

The quality and stability of your teams also constitute a major attractiveness factor. High turnover or vacant key positions can frighten potential buyers. Conversely, a competent, committed and stable team represents a considerable asset that will increase the perceived value of your business.

Experts generally recommend a preparation period of 12 to 24 months before putting a business up for sale. This period allows you to optimise the financial, organisational and operational aspects to maximise valuation. If you identify significant gaps in these areas, it may be wise to postpone your sale project whilst you address them.

For comprehensive support in preparing your sale, consult our complete guide to selling your business in Switzerland, which details each stage of the sales process.

3. What is the real value of my business?

Knowing the real value of your business is an essential prerequisite before making the decision to sell. Yet many business owners embark on a sale process with an approximate, or even completely unrealistic, idea of what their SME is worth. This lack of knowledge can lead to major disappointments or, conversely, to selling an undervalued business at a bargain price.

In Switzerland, several business valuation methods are commonly used by professionals. The EBITDA multiples method (earnings before interest, tax, depreciation and amortisation) is particularly widespread for SMEs. It consists of applying a multiplier coefficient to operating profit, with this coefficient varying according to the sector of activity, the size of the business and its growth prospects.

The discounted cash flow method (DCF) projects the business's future cash flows and discounts them to their present value. This approach is particularly relevant for businesses in strong growth or with significant planned investments. The substantive value method, meanwhile, is based on the value of the business's assets, an approach often used for property or industrial businesses with significant tangible assets.

A frequent and sometimes painful gap exists between the emotional value you attribute to your business and its objective market value. After years of personal investment, sacrifices and emotional attachment, it is natural to overvalue what you have built. However, potential buyers will evaluate your business according to purely rational criteria: profitability, growth potential, risks, competitive positioning.

This difference in perception can create tensions during negotiations if you have not previously adjusted your expectations. This is why it is crucial to obtain a professional and objective valuation before launching. This valuation will not only enable you to set a realistic sale price, but also to determine whether the sale proceeds will correspond to your personal financial objectives.

Several factors can significantly influence valuation: revenue recurrence, customer diversification, quality of intellectual property, market entry barriers, supplier dependence, and of course the growth prospects of the sector.

To obtain a free and confidential estimate of your business, use Leez's online valuation tool. This initial assessment will give you a value range based on Swiss market standards and enable you to determine whether the timing is right to sell.

4. Am I financially ready for the post-sale period?

The valuation of your business is only part of the financial equation. The crucial question is whether the sale proceeds will enable you to finance the lifestyle you desire for the decades to come. This reflection requires rigorous financial planning that goes well beyond the simple transaction amount.

Start by establishing a detailed budget of your future financial needs. What standard of living do you wish to maintain? What personal projects do you want to undertake? Do you have financial obligations towards your family, your children or other dependants? Don't forget to take into account inflation and the potential increase in health costs with age. A frequent mistake is to underestimate one's long-term financial needs.

Tax aspects represent an essential dimension of this financial preparation. In Switzerland, the taxation of capital gains when selling a business can vary considerably depending on your canton of residence, the legal structure of your business (sole proprietorship, Sàrl, SA), and your personal situation. For a natural person selling their sole proprietorship, gains may be taxed as income, with rates that vary greatly from one canton to another.

However, there are several perfectly legal tax optimisation strategies that can significantly reduce your tax burden. Using a holding company, spreading the sale over several years, or certain deductions related to occupational pension provision can generate substantial savings. These strategies must be put in place well before the transaction, hence the importance of consulting a tax expert specialising in business transfers from the earliest stages of reflection.

Planning for your retirement must also be integrated into this reflection. If you sell your business before retirement age, how will you bridge the gap until you receive your AHV and pension benefits? Have you optimised your buy-ins to your pension fund? Will the sale proceeds be sufficient to supplement your retirement income and maintain your standard of living?

Another often overlooked aspect concerns the management of capital obtained after the sale. Do you have the skills or support necessary to invest and grow this capital? Poor post-sale management can quickly erode the value obtained during the transaction.

It is strongly recommended to consult a financial planner and a tax expert before making the decision to sell. These professionals will help you model different scenarios, optimise the structure of the transaction and ensure that your personal financial objectives will be achieved. Leez collaborates with a network of specialist partner experts in taxation and financial planning who can support you in this process.

5. What will I do after the sale?

One of the most underestimated questions by entrepreneurs is that of life after the sale. Many business owners focus exclusively on the financial and legal aspects of the transaction, completely neglecting to plan what they will do once the business is sold. This absence of a post-sale project can lead to a feeling of profound emptiness, or even post-transaction depression.

For many entrepreneurs, their business represents not only a source of income, but constitutes an integral part of their identity. For years, you have structured your daily routine, your social relationships and your sense of accomplishment around your professional activity. Overnight, this framework disappears. Without a clear project for afterwards, you risk finding yourself at a loose end, even with a comfortable bank account.

Several options are available to you for this new phase of life. Active retirement appeals to many sellers who wish to enjoy their free time whilst remaining intellectually stimulated: travel, cultural activities, sports, learning new skills. This option nevertheless requires having cultivated interests outside of work, which is not always the case for highly invested entrepreneurs.

Launching a new entrepreneurial project attracts business owners who do not feel ready to leave the business world completely. With your experience and available capital, you could create or take over another business, in a different or complementary sector. This option offers the advantage of maintaining professional activity whilst avoiding the routine of your former business.

Consulting and mentoring represent a particularly enriching path for passing on your expertise. Many younger entrepreneurs would be delighted to benefit from your advice and experience. You could become an independent director, strategic adviser, or mentor in start-up support programmes. This activity would allow you to remain connected to the entrepreneurial world without the daily operational constraints.

Involvement in charitable activities or philanthropy also offers a source of satisfaction and meaning. You could put your skills at the service of causes close to your heart, sit on foundation boards, or become involved in your local community.

The risk of post-sale depression is particularly high among entrepreneurs who have devoted most of their time and energy to their business. Studies show that up to 75% of business sellers experience a feeling of regret or emptiness in the year following the transaction. This phenomenon is all the more marked when the sale has not been anticipated on a personal and emotional level.

It is therefore crucial to begin preparing for this transition well before the actual sale. Gradually develop activities and relationships outside your business. Explore different options and test them before committing. Discuss with other entrepreneurs who have experienced this transition to benefit from their feedback. This psychological and practical preparation is just as important as financial and legal preparation.

6. Are my family and loved ones aligned with this decision?

The decision to sell your business does not concern you alone. It will have significant repercussions on your family and loved ones, particularly in the case of a family business. Neglecting this relational dimension can create lasting tensions and compromise both the transaction and your personal relationships.

In the context of a family business, the question of family succession versus external sale is often a source of conflict. Do your children or other family members work in the business? Do they have expectations regarding succession? Even if you judge that no family member has the profile or motivation to take over the business, this decision must be communicated and explained with tact and transparency.

Some family members may feel the sale as a betrayal of the family heritage, especially if the business bears the family name or was founded by a previous generation. These emotional and symbolic dimensions should not be underestimated. Take the time to organise family discussions to explain your motivations, listen to concerns and answer questions.

If members of your family work in the business, their professional future will be directly impacted by the sale. Will the buyer maintain these positions? Are your loved ones ready to work under new management? These questions must be addressed openly to avoid unpleasant surprises and allow everyone to prepare.

The dimension of inheritance and succession planning must also be integrated into your reflection. The sale proceeds will constitute a significant part of your transferable estate. Have you thought about how you wish to distribute this capital among your heirs? Are advance donations possible? Could specific wealth structuring optimise future transfer?

Your spouse or life partner must be particularly involved in this decision. The sale of the business will change your pace of life, your availability and potentially your place of residence. These changes will directly affect your couple's life. Ensure that your partner shares your vision of the post-sale period and that you are aligned on your future projects.

It is recommended to involve your family from the earliest stages of reflection, well before putting the business up for sale. This transparency will allow everyone to gradually adapt to the idea, express their concerns and participate in building the post-sale family project. In some cases, support from a family mediator or an adviser specialising in family transfer can facilitate these discussions and prevent conflicts.

7. Is the timing right in the market?

Beyond your personal preparation and that of your business, market timing plays a determining role in the success of your sale. Selling at the right time can make the difference between a successful transaction at an optimal price and a difficult sale with significant concessions on valuation.

The general economic climate directly influences buyers' appetite and their financing capacity. In periods of economic growth, investors are more confident, banks more inclined to finance acquisitions, and valuations tend to be higher. Conversely, in periods of recession or uncertainty, buyers become more cautious, demand discounts and transactions become scarcer.

The state of the mergers and acquisitions market in Switzerland varies according to sectors and periods. Some years are marked by intense activity with numerous transactions, whilst others experience a slowdown. Staying informed about current M&A market trends will enable you to identify windows of opportunity. Sectors in strong growth or consolidation generally attract more buyers and benefit from higher valuation multiples.

Sector-specific trends in your field of activity must also be analysed. Is your sector expanding or declining? Are new technologies or regulations disrupting your market? A sector in full transformation may be perceived as an opportunity by some visionary buyers, but as a risk by more conservative ones. Understanding the positioning of your business in these sector dynamics will help you choose the right time.

A fundamental principle regarding sale timing: you must sell when the business is performing well, not in a crisis period. Buyers pay for future potential, and this potential is much easier to demonstrate when your business shows solid growth, healthy margins and positive prospects. Waiting for difficulties to set in before selling is a strategic error that will inevitably result in a significant discount.

Ideally, the best time to sell your business is at the peak of its performance, when indicators are in the green and prospects remain promising. This may seem counter-intuitive – why sell when everything is going well? – but it is precisely at this moment that you will maximise your valuation and attract the best buyers.

Market cycles must also be taken into account. Some sectors experience predictable cycles of expansion and contraction. If your sector is approaching the peak of a bull cycle, it may be wise to accelerate your sales process. Conversely, if you are at the trough of a cycle, it is better to wait until recovery if your personal situation allows.

External factors can also create specific windows of opportunity: regulatory changes favouring consolidations, arrival of new investors in your market, technological developments creating value for your activity. Remaining attentive to these signals can enable you to seize the optimal moment.

To deepen your reflection on timing, consult our detailed article on the signs that indicate it's time to sell, which will help you identify whether current conditions are favourable to your sale project.

8. Do I have the right resources to successfully complete this transaction?

Selling a business is a complex process that requires specialised skills in various areas: legal, tax, financial, negotiation and strategy. Few entrepreneurs possess all of these areas of expertise. Attempting to manage the sale of your SME alone is not only risky, but can cost you dearly in terms of valuation and transaction conditions.

A lawyer specialising in corporate law and mergers and acquisitions is essential to legally secure the transaction. They will draft or review the letter of intent, the sale contract, the seller's warranties and representations, and protect you against post-sale legal risks. Swiss transaction law contains many subtleties that only a specialist fully masters.

An accountant or auditor will play a crucial role in preparing your financial statements, responding to due diligence questions and optimising the tax structure of the transaction. They will also help you present your figures clearly and convincingly to potential buyers.

A mergers and acquisitions (M&A) adviser or specialised intermediary can considerably facilitate the process. These professionals will help you correctly value your business, identify and approach qualified potential buyers, structure the transaction optimally and negotiate the best conditions. Their market expertise and network can make a significant difference to the final price and terms of the sale.

A matchmaking platform like Leez also constitutes a valuable resource. It allows you to distribute your opportunity confidentially to a qualified network of potential buyers, whilst benefiting from secure tools to manage exchanges of sensitive information. This approach considerably expands your pool of potential buyers beyond your immediate network.

Beyond these professionals, you will potentially need other expertise depending on your situation: tax adviser to optimise taxation, financial planner to manage the sale proceeds, business valuator for an independent valuation, or communications specialist to manage the announcement of the sale to your teams and customers.

The question of the cost of this professional support legitimately arises. Fees can represent several per cent of the sale price. However, consider this as an investment rather than an expense. Good support can significantly increase the final sale price, legally secure the transaction and save you valuable time. The difference in valuation obtained thanks to these experts generally far exceeds their fees.

Leez has developed a network of specialist partner experts in business transfers: lawyers, fiduciaries, M&A advisers, tax experts. These professionals know the specificities of the Swiss market and can support you at each stage of your sale project. Their coordinated intervention guarantees a coherent and optimised approach to your transaction.

Don't wait until you're in the midst of negotiations to build your team of experts. Ideally, start consulting them from the initial reflection phase. Their external perspective and expertise will help you make the right decisions from the outset and avoid costly mistakes that could compromise your project.

9. Am I emotionally ready to let go?

Among all the questions to ask yourself before selling, that of your emotional readiness is perhaps the most difficult, but also the most determining. Many transactions fail or proceed painfully not for financial or legal reasons, but because the seller was not psychologically ready to part with their business.

Emotional attachment to your business is natural and legitimate. You have invested years of work, overcome countless obstacles, sacrificed personal and family time to build this organisation. Your business probably bears your imprint at every level: the culture, the values, the relationships with customers and employees. It represents much more than a financial asset; it is part of your identity.

The question of entrepreneurial identity is central. Who are you without your business? For years, you have introduced yourself as the founder or owner of your SME. This professional identity has structured your social life, your relationship network and your sense of accomplishment. The day you sell, you will lose this status. Are you prepared for this identity transition?

Fear of emptiness constitutes another frequent emotional dimension. After years of full days, constant challenges and permanent demands, the post-sale silence can be destabilising. Some entrepreneurs compare this transition to bereavement, with its different phases: denial, anger, sadness, acceptance. Recognising that this process of entrepreneurial mourning is normal will help you navigate it better.

The difficulty in trusting the buyer also represents a major emotional obstacle. You will inevitably wonder whether the new owner will take care of your "baby" as you have done. Will they maintain the values you have instilled? Will they preserve the jobs of your loyal employees? These concerns are legitimate, but they must not paralyse your decision if it is rationally justified.

Certain signals may indicate that you are not yet emotionally ready: you systematically find faults with all potential buyers, you constantly postpone signing without objective reason, you feel intense anxiety at the idea of the sale, or you are already imagining scenarios of buying back after a few years. If you recognise these patterns, it may be necessary to work more on your emotional detachment before proceeding.

The work of emotional detachment does not happen overnight. It ideally begins several years before the actual sale. Gradually delegate more responsibilities, take a step back from daily operational decisions, develop activities and relationships outside the business. This progressive distancing will facilitate the final separation.

For some entrepreneurs particularly fused with their business, psychological support or specialised coaching can prove valuable. These professionals will help you work on your post-entrepreneurial identity, manage your fears and resistance, and calmly prepare for this major life transition. There is no shame in recognising that you need help to navigate this stage; on the contrary, it is proof of lucidity and maturity.

Ask yourself honestly: am I ready to sell my business on an emotional level? If the answer is no or hesitant, take the necessary time to work on this aspect. A sale carried out in a state of insufficient emotional preparation risks turning into a painful experience, with lasting regrets, even if the financial conditions are excellent.

10. What type of buyer corresponds to my vision?

The final essential question concerns the profile of the ideal buyer for your business. Not all buyers are equal, and beyond the price offered, many criteria must guide your choice. Clarifying your priorities now will enable you to better target your search efforts and facilitate your final decision.

Several types of buyers may be interested in your SME, each with different motivations and approaches. The individual buyer is often an experienced entrepreneur or an executive in career transition who wishes to become their own boss. This type of buyer generally favours continuity of activity and maintaining teams. They will be particularly attentive to company culture and relationships with existing customers.

A competitor or a company in the same sector may also be interested in your SME, in a logic of external growth or market consolidation. This type of buyer primarily seeks synergies: economies of scale, complementarity of offering, geographical expansion. The advantage is that they immediately understand the value of your business and can pay a higher price thanks to anticipated synergies. The disadvantage is that they may carry out significant restructuring, with potential job losses.

A financial investor (investment fund, family office) approaches the acquisition with a purely financial logic. They seek a return on investment in the medium term (generally 3 to 7 years) and can bring significant resources to accelerate growth. This type of buyer will often professionalise management, but may also exert strong pressure on performance and profitability.

A management buyout (MBO) consists of selling your business to your current management team. This option has the advantage of ensuring maximum continuity and rewarding loyal employees. However, financing can be more complex, and the sale price potentially lower than that offered by an external buyer.

Beyond the type of buyer, identify what matters most to you in this transaction. Is price your absolute priority, or are you willing to accept a slightly lower offer in exchange for other guarantees? Is preserving employment and maintaining your teams essential to you? Do you want the buyer to perpetuate your values and vision, or do you accept that they will radically transform the business?

The question of perpetuating the name and brand may also be important, particularly if the business bears your family name or if you have built a strong reputation. Some sellers negotiate maintaining the name for a determined period, whilst others prefer a clean break.

Your post-sale involvement constitutes another criterion to define. Do you want an immediate and total break, or do you prefer to support the buyer during a transition period (generally 6 to 12 months)? This transition period can reassure the buyer and facilitate knowledge transfer, but it can also prolong your attachment and delay your new life.

Clarifying these criteria from the outset will enable you to better evaluate offers and make a decision aligned with your values and priorities. It is rare to find the perfect buyer who ticks all the boxes, but knowing what is negotiable and what is not will greatly facilitate your selection process.

To explore current opportunities and better understand the profiles of buyers active in the Swiss market, consult the Leez platform which connects qualified sellers and buyers. You will be able to refine your understanding of the market and identify the type of buyer best suited to your situation.

Self-assessment: are you ready to sell?

Now that you have explored the 10 essential questions, it is time to take stock of your overall degree of readiness. This self-assessment will enable you to identify your strengths and areas requiring more work before embarking on the sale process.

For each question addressed previously, honestly give yourself a score from 1 to 3 according to the following scale:

• 1 point: Not at all ready - You have not yet seriously thought about this dimension or you identify significant gaps
• 2 points: Preparation in progress - You have started working on this aspect but improvements are still necessary
• 3 points: Ready - You have a clear and satisfactory answer to this question, and you are confident about this aspect

Calculate your total score by adding up the points obtained for the 10 questions. Here is how to interpret your results:

25-30 points: You are ready to launch the process
Congratulations! You have clearly conducted in-depth reflection and are well prepared on most critical dimensions. It is time to take action: have your business professionally valued, build your team of experts and begin identifying potential buyers. Your level of preparation will maximise your chances of successfully completing your sale in the best conditions.

18-24 points: Preparation necessary on certain aspects
You are on the right track, but certain areas deserve more attention before you launch. Identify the questions for which you obtained the lowest scores and focus your efforts on these aspects. Depending on the areas concerned, allow 6 to 12 months of additional preparation. This optimisation period could significantly improve the conditions of your future transaction.

Less than 18 points: Postpone the project and work on weak points
Your score indicates that you are not yet sufficiently prepared to sell your business in optimal conditions. This is not bad news in itself: it is better to identify these gaps now rather than in the midst of negotiation. Take the necessary time (generally 12 to 24 months) to work systematically on each dimension. Focus particularly on questions that scored 1 point, as these are the ones that could compromise your transaction or significantly reduce its value.

Honesty in this self-assessment is crucial. It is tempting to overestimate yourself to reassure yourself or to accelerate the process. Resist this temptation. A realistic assessment will enable you to identify the real obstacles and overcome them before they become problematic. Don't hesitate to seek the opinion of trusted people (spouse, partner, adviser) to obtain an external perspective on your preparation.

Whatever your current situation, remember that preparation is an investment, not a waste of time. Each month devoted to optimising your business and your personal preparation will result in a smoother transaction, a higher price and a more serene transition to your new life.

Mistakes to avoid in your reflection

Before concluding, it is important to identify the common pitfalls that many sellers encounter in their reflection process. Knowing these mistakes will enable you to avoid them and significantly increase your chances of success.

Deciding under the influence of emotion
Whether it's anger after a conflict with an employee, exhaustion after a difficult period, or euphoria after strong performance, decisions made under the influence of strong emotions are rarely the best. Always take time for calm reflection before committing to a sales process. If you feel a strong impulse to sell, allow yourself a few weeks of perspective before making a definitive decision.

Overvaluing your business
Emotional attachment frequently leads to unrealistic overvaluation. Setting too high a price will drive away serious buyers and unnecessarily prolong the sales period, which can ultimately devalue your business (buyers will wonder why it isn't selling). Base yourself on a professional and objective valuation, and accept that the market value may be lower than your personal estimate.

Neglecting preparation
Wanting to sell quickly without taking the time to prepare your business is a costly mistake. Buyers will immediately identify weaknesses (disorganised accounting, undocumented processes, excessive dependence on the owner) and demand significant discounts. Invest 12 to 24 months in preparation; this time will be largely compensated by better valuation.

Selling urgently
Whether for financial, health or personal reasons, selling urgently places you in a position of weakness in negotiations. Buyers quickly detect this urgency and take advantage of it to negotiate more favourable conditions. As far as possible, anticipate your decision to sell to avoid being constrained by tight deadlines.

Not anticipating the afterwards
As we have seen, neglecting to plan your post-sale life can lead to a feeling of emptiness and regret, even if the transaction is financially successful. Start building your future life project well before the actual sale. This anticipation will also facilitate your emotional detachment from the business.

To deepen your knowledge of mistakes to avoid throughout the sale process, consult our detailed article on the 7 most common mistakes when selling an SME. This article will provide you with concrete advice to secure each stage of your transaction and maximise your chances of success.