Top 10 Questions to Ask Before Selling Your Trades Business
- Tawni Nguyen
- Jun 14
- 3 min read
Updated: Jun 29
Q: Why isn’t getting an offer the same as getting a good deal?
A: Because an offer is just a number—it doesn’t reflect the terms, taxes, or what you walk away with.
The biggest risk in selling your business isn’t the market.
It’s not preparing. Not knowing your numbers. Not understanding how the game is actually played.
Avoid these 10 mistakes, and you won’t just sell—you’ll win.
Q: What’s the first mistake most sellers make?
A: Waiting until they’re burnt out.
If you’re tired, out of cash, or just want out, you’ve already lost leverage.
Buyers can feel your desperation—and they’ll use it. Plan your exit while you’re growing, not barely surviving.
Q: Does revenue determine value?
A: No. Profit, systems, and predictability do.
Buyers don’t pay for a $5M top line.
They pay for what you keep. Focus on increasing your EBITDA or SDE, improving margins, and building recurring revenue.
Net profit drives multiples.
Q: Can I still run everything and sell for top dollar?
A: Not likely.
If you are the estimator, the closer, and the operations manager—your business is you.
Buyers don’t want to buy a job. They want a business that runs without you.
Q: Is it really that bad to mix personal and business expenses?
A: Yes. Running car payments or vacations through your business bloats your P&L.
Buyers can’t tell what’s profit and what’s lifestyle—and they’ll either discount the offer or walk.
Q: What do buyers expect from your books?
A: Clarity in under 30 minutes.
If financials are outdated, messy, or hard to follow, you’re likely losing the premium deal.
Your books should be:
Up to date
Professionally categorized
Clear on add-backs and one-time expenses
Q: Why does recurring revenue matter so much?
A: It creates predictability.
Service agreements and maintenance plans—even small ones—make your business more valuable.
Predictable cash flow = higher multiple.
Q: What’s the most misunderstood part of a deal?
A: Deal structure.
A $2M offer might only net you $1.1M after taxes, earnouts, and financing. You need to know:
How much is upfront
What’s performance-based
What’s financed by you
Your post-tax amount
Q: Should I hire a broker?
A: Only if there’s a clear strategy.
Many brokers just do a marketing blast and hope something sticks. Without valuation targets, buyer profiles, or a transition plan—you’ll attract tire kickers, not strategic partners or financial buyers.
Q: Should I tell my team I’m selling?
A: Yes—gradually and strategically.
A surprise exit leads to panic. Top employees leave. Morale tanks. If your team is essential, build a communication and transition plan that gives them security and incentives.
Q: What’s the silent killer of deal value?
A: Not knowing your number.
Most owners:
Don’t know EBITDA/SDE/net profit
Don’t know add-backs/margins
Don’t know what they’d walk away for
This leads to poor decisions and massive value left on the table.
Q: Do I have to sell 100% of my business to win?
A: No. You can partially sell, keep control, and grow with capital and strategic support.
The best deals evolve your role, protect your upside, and create a future you’re proud of.
That’s what we look for:
Founders who built something real
Are hitting a ceiling due to capital or capacity
Still have more to give—but want a new chapter
Q: What’s the one thing that separates a great exit from a mediocre one?
A: Preparation.
Selling your trades business isn’t just a transaction—it’s a transition that impacts your family, employees, and future.
Avoid these mistakes, and you’ll exit with clarity, confidence, and real value.
Ready to Explore Your Options?
We help HVAC, plumbing, and trades business owners explore full exits, partial sales, and capital partnerships.
It might just change how you think about exiting.
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