What happened
Talent Canada interviewed two partners at Harmony Succession Partners, Thomas Bevilacqua and Robert Bezede, about what owners of private businesses should do before they sell, as reported by Talent Canada. Their central advice is to start early. They suggest two to three years before a sale at minimum, and ideally up to five, because tax structuring, financial records and team building all take time.
The advisors say buyers price a business on how predictable it is and how risky it looks. A capable management team, documented processes and less reliance on the owner lower that risk, and a lower risk tends to mean a better valuation. Bezede called key employees one of the most important drivers of value, since buyers look hard at transition risk.
They also covered timing and records. Owners must decide when to tell key staff about a sale, because telling them too early creates uncertainty and too late can complicate buyer talks. Buyers typically review four to five years of financial, operational and tax records. An owner forced to sell within 12 months, Bezede said, has very limited options.
Why it matters if you are hiring
If you own a private company, even one you plan to run for another decade, the people under you are part of what a buyer will eventually price. A business where every major decision still runs through the owner is harder to sell and worth less.
That turns hiring into a succession decision. The roles that matter most are the ones that replace the owner's daily involvement: a general manager or COO, a controller or finance lead who can produce clean statements, and sales and operations leaders who hold the customer relationships. Filling these seats takes months. Letting them settle in and show results takes longer, and that is the point of the two to five year window.
Retention matters just as much. The article makes clear that key people need a reason to stay through a transition, and the right moment to bring them in depends on the deal. Compensation and retention terms are easier to set when you are not under a deadline.
One thing to do this week
List the five decisions or customer relationships that still depend on you personally. For each one, name the person who could own it within 12 months. Where the name is blank, that is the role to start hiring for now.
Traverse helps employers in Canada and the US find the operations, finance and sales leaders who can carry a business without its founder, on contract or permanent.