Exit Planning and Sell-Side Advisory

Exiting your business is one of the most important financial decisions you will make. Our expert team ensures you maximize your payout with comprehensive planning, financial preparation, and strategic positioning.

What We Do

End-to-end support from initial assessment through closing.

Financial Due Diligence

We scrub your financials so buyers see clean, defensible numbers. No surprises in the data room.

Quality of Earnings Preparation

A sell-side QoE gives you control of the narrative before buyer diligence begins. We prepare it so you are not caught off guard.

Deal Structuring and Negotiation

We work alongside your attorney and broker to structure a deal that protects your interests and maximizes after-tax proceeds.

Valuation and Wealth Management

We help you understand what your business is worth today and what levers to pull to increase that number before going to market.

The PE Roll-Up Wave

Private equity is actively consolidating trades businesses — HVAC, plumbing, electrical, roofing. If you are in one of these sectors, the window for premium valuations is open now. We help you position for maximum value.

Platform Acquisitions

PE firms are paying 6-8x EBITDA for well-run trades businesses with clean books and strong management teams.

Add-On Premiums

Even smaller companies can command strong multiples as add-on acquisitions to existing platforms, especially with geographic or service-line overlap.

Our Process

A clear path from where you are today to a successful exit.

1

Assessment

We evaluate your financials, operations, and market position to understand where you stand today.

2

Preparation

We clean up your books, prepare a sell-side QoE, and address any issues that could reduce your valuation.

3

Positioning

We package your business to tell the strongest story possible to potential buyers and their advisors.

4

Transaction

We support you through due diligence, negotiations, and closing to ensure nothing falls through the cracks.

Sell-Side Advisory: What It Actually Means

Most business owners go through an exit once. Buyers do it every quarter. A sell-side advisor levels the playing field.

Your Advocate at the Table

A sell-side advisor works exclusively for you — the seller. Unlike a broker who may be incentivized to close fast, our role is to maximize your total proceeds while protecting the terms that matter to you: earnout structure, indemnification caps, non-compete scope, and transition timelines.

We have seen deals renegotiated downward by 15-25% during due diligence because sellers were not prepared for buyer questions. That does not happen when we are involved. We anticipate the questions, prepare the answers, and control the information flow.

What We Handle

Data room preparation — Organized, indexed, and pre-vetted so buyers see professionalism from day one
Financial narrative — We frame your numbers to tell the growth story buyers want to hear, backed by defensible data
EBITDA adjustments — Identifying and documenting legitimate add-backs that increase your valuation
LOI review and negotiation — Ensuring the Letter of Intent protects you before exclusivity begins
Buyer diligence management — We handle all financial requests, Q&A sessions, and management presentations
Working capital and closing mechanics — Preventing last-minute surprises on the closing balance sheet

Common Deal Killers We Prevent

1

Inconsistent financials

Tax returns don't match internal reports. We reconcile everything before buyers ever see it.

2

Customer concentration risk

If one customer is 30%+ of revenue, buyers discount the price. We help you diversify or frame the risk properly.

3

Owner dependency

If the business can't run without you, buyers see risk. We help build systems and a management layer that demonstrates transferability.

4

Undocumented add-backs

Personal expenses, one-time costs, and above-market owner compensation need documentation. Without it, buyers ignore them.

5

Working capital disputes

The #1 post-LOI negotiation issue. We establish a clear working capital peg early to avoid closing day conflicts.

Due Diligence Readiness Checklist

Buyers will ask for all of this. We make sure you have it ready before they do.

Financial

3 years audited or reviewed financial statements
Monthly P&L, balance sheet, and cash flow statements
Tax returns (federal and state, 3 years)
Revenue by customer and service line
Accounts receivable and payable aging
Debt schedule with terms and covenants
Capital expenditure history and projections
Working capital analysis (trailing 12 months)
EBITDA bridge with documented add-backs

Operational

Organizational chart with roles and compensation
Key employee contracts and non-competes
Customer contracts and retention rates
Vendor agreements and supply chain overview
Insurance policies (GL, E&O, D&O, cyber)
Lease agreements and real estate obligations
Technology systems and software licenses
Standard operating procedures (SOPs)
Pending or threatened litigation

Strategic

Growth projections with supporting assumptions
Market analysis and competitive positioning
Sales pipeline and backlog documentation
Marketing strategy and lead generation metrics
Intellectual property and proprietary processes
Regulatory compliance and licenses
Management transition plan
Identified risks and mitigation strategies
Post-close integration considerations

Not sure where you stand? We offer a free 30-minute exit readiness assessment.

Book Your Assessment

Frequently Asked Questions

How long does the exit planning process take?

A full exit planning engagement typically runs 6 to 18 months depending on the complexity of the business and the readiness of your financials. Some owners start planning 2 to 3 years before a target exit date to maximize valuation.

What is a Quality of Earnings report and why do I need one?

A Quality of Earnings (QoE) report is a deep financial analysis that buyers and their advisors use to validate your reported earnings. Having a sell-side QoE prepared in advance gives you control of the narrative and prevents surprises during due diligence that could reduce your purchase price.

Do you work with my existing accountant and attorney?

Yes. We coordinate directly with your CPA, attorney, and any other advisors involved in the transaction. Our role is to serve as the financial quarterback of the deal, ensuring all parties are aligned and the process moves efficiently.

Ready to Plan Your Exit?

The best time to start planning your exit is before you need to. Let us help you understand your options and build a roadmap to maximize your outcome.

Book a Free Consultation

Or email us at info@localfractional.com