How to Build and Sell your Business the Right Way with Lee Heisman

Selling your business is one of the biggest financial and emotional decisions you’ll ever make. Whether you run a home services company or a high-growth firm, the key to a successful exit is preparation, long before you ever go to market.

In a recent conversation with Lee Heisman and Peter Cookman of Exit Stage Left Advisors, both seasoned M&A experts, they shared what every business owner should know before selling.

Contact Lee:
Lee’s email: Lee@esladvisors.com 
Lee’s cell: 404-431-7800

1. Profit Matters More Than Revenue

A $10 million company with no profits isn’t worth much. What buyers really care about is EBITDA, your earnings before interest, taxes, depreciation, and amortization. Strong, growing profits show that your business is stable and healthy.

“If you pointed a gun to my head and asked what matters most when selling, I’d say profits, your EBITDA,” says Heisman.

2. Sell When You’re Up, Not Burnt Out

Most owners wait until they’re tired or the business has plateaued. That’s the wrong time. Buyers pay the best prices when your company is performing well and trending upward.

If you’re feeling burnout, focus on strengthening the business first, then plan your exit while it’s still growing.

3. Build Predictability into Your Revenue

The more predictable your income, the higher your value. Converting one-time customers into recurring service contracts signals stability and lowers risk for buyers.

A pest control or HVAC company with recurring monthly or annual agreements, for example, can see its valuation multiple increase dramatically.

4. Strengthen Your Second-in-Command

A solid leadership team (often called “G2”) is essential. If you plan to step away after the sale, buyers need to see that your company can operate without you. A strong G2 increases confidence and the price.

5. Keep Exit Plans Confidential

It’s tempting to tell your team you’re thinking about selling. Don’t. Even loyal employees may panic or leave if they don’t understand how it affects them. Wait until you have the structure, contracts, and incentives ready before you share anything.

6. Don’t Go It Alone

Selling your company isn’t like selling a house online. Sites like BizBuySell attract bargain hunters, not strategic buyers. Experienced M&A advisors run controlled, competitive processes that can raise your sale price substantially.

Heisman shares one example: a client’s business was valued at $14 million by their accountant. After Exit Stage Left ran a formal auction, it sold for $22 million in cash.

7. Think Bigger: The “Grape vs. Watermelon” Mindset

Would you rather own 100% of a grape or 20% of a watermelon? Selling part of your business to a larger platform can lead to a much bigger payday later, the “second bite of the apple.”

Private equity firms often roll up several companies to create a larger entity worth a higher multiple. That second sale can yield more than the first.

8. Protect Yourself from Earnout Surprises

If part of your payout depends on future results, stay involved long enough to protect your interests. Work with advisors and attorneys who know how to structure earnouts fairly so you don’t lose control of your outcome.

There’s no shortcut to a successful exit

The best sales happen when business owners prepare early, focus on profitability, and surround themselves with experts who know the process.

If you’re thinking about selling within the next few years, start planning now, your future self will thank you.