Smart business owners always operate as if they’re planning to sell — because they never know when someone will come along with an irresistible offer or when tragedy might strike.

So what does it mean to operate “sale ready?” It means preparing reliable, transparent financial statements that comply with Generally Accepted Accounting Principles (GAAP). It means hiring a CPA to audit your books, creating formal plans and budgets, and implementing a strong system of internal controls. It means engaging a qualified appraiser for regular business valuations.

When potential buyers must make financial statement adjustments to get a clearer idea of what’s for sale, it makes them uneasy and may decrease your selling price. These include adjustments for nonrecurring one-time expenses, related-party transactions, unreported cash receipts, or below- (or above-) market owners’ compensation. Fixed assets should be well maintained and replaced if necessary.

Decentralized management structures appeal to potential buyers, too. Train the next generation of managers, and establish contingency plans. Life insurance policies are also an important part of surviving the untimely loss of a key person.