The work you do before you formally go to market has a direct impact on your valuation, the speed of the sale, and the quality of offers you receive. Most FM business owners who achieve the best outcomes start preparing 6 to 12 months before they instruct a broker.
This is not about making your business look better than it is. It is about removing the friction that slows deals down, addressing the issues that make buyers nervous, and presenting your business clearly so that its genuine strengths come through.
1. Clean Up Your Financial Records
Buyers and their accountants will scrutinise your last two to three years of accounts in detail. The cleaner and more transparent your financial records, the faster due diligence moves and the more confidence buyers have in your numbers.
What to do
- Separate personal expenses from business expenses. If you run personal costs through the company, buyers will discount your profitability
- Ensure your accounts clearly show the split between contract revenue and ad hoc or reactive work. Buyers value recurring contract income at a higher multiple than one-off callouts
- Prepare a schedule of add-backs: owner salary, non-recurring expenses, one-off costs. This helps buyers calculate adjusted EBITDA accurately
- If you are VAT registered, ensure your VAT returns are up to date and consistent with your management accounts
2. Document Your Contract Portfolio
Your service contracts are likely the most valuable asset in your FM business. Buyers will want to see exactly what they are acquiring, how secure each contract is, and how the portfolio has performed over time.
What to do
- Create a contract register listing every active service agreement: client name, contract value, renewal date, term length, scope of work, and any termination or change-of-control clauses
- Compile SLA performance data for the last 12 months. Buyers want evidence that you consistently meet your service level commitments
- Document client satisfaction records: formal feedback, Net Promoter Scores, or any recurring client review meeting outputs
- Calculate your contract renewal rate for the last two to three years. A rate above 85% is strong; above 90% is excellent
- Identify contracts operating on informal arrangements (no signed agreement) and formalise them. Verbal agreements make buyers nervous
3. Ensure ISO Certifications Are Current
ISO 9001 (quality management), ISO 14001 (environmental management), and ISO 45001 (occupational health and safety) certifications are core value drivers for FM businesses. Any gaps, lapses, or pending audit actions will reduce buyer confidence and potentially stall a deal.
What to do
- Confirm all ISO certifications are current with no pending corrective actions or non-conformities from previous audits
- Check that your next surveillance or recertification audit date does not fall during the likely sale timeline. If it does, bring the audit forward or ensure you are fully prepared
- Document your management systems. Buyers acquiring ISO-certified businesses expect to see documented processes, not just certificates on the wall
- Review your audit schedules and ensure all internal audits are up to date. A well-maintained audit trail demonstrates operational maturity
4. Prepare TUPE-Ready Staff Records
In virtually every FM business sale, staff transfer to the new owner under TUPE. Buyers will want to see that your employment records are complete, compliant, and ready for the consultation process.
What to do
- Review all employment contracts for completeness: job descriptions, terms, notice periods, and any restrictive covenants. Ensure they reflect current roles and responsibilities
- Prepare a skills matrix for your operational team: who holds which competencies, qualifications, and trade certifications, when they were last trained, and when recertification is due
- Ensure all DBS checks are current for staff who require them, particularly those working in sensitive environments such as healthcare facilities, schools, or government buildings
- Compile up-to-date training records: health and safety, manual handling, working at height, COSHH, asbestos awareness, and any site-specific inductions
5. Reduce Owner Dependence
If the business cannot operate without you, the buyer inherits a significant transition risk. The more the business runs independently, the higher its value and the smoother the handover.
What to do
- Delegate key client relationships to senior team members. If all major clients know and trust only you, the buyer worries about retention after you leave
- Ensure operational processes are documented: how jobs are scheduled, how site teams are managed, how reactive callouts are handled, how quality checks are performed
- If you personally manage contract renewals, tender responses, or pricing decisions, start transitioning these responsibilities to your operations or commercial team
- If you handle sales or business development personally, start training or hiring someone to take over that function before you go to market
6. Address Known Issues
Anything that will come up in due diligence is better addressed before you go to market. Surprises during due diligence kill deals or reduce offers.
What to do
- Review all subcontractor agreements for completeness and compliance. Ensure terms, insurance requirements, and payment schedules are documented and current
- Confirm your insurance cover (professional indemnity, public liability, employer's liability) is adequate and up to date. Underinsurance is a red flag for buyers
- If your equipment fleet or vehicles are approaching end of life, factor in the capital cost or renew before sale. Buyers will discount for deferred capital expenditure
- Ensure all health and safety records are complete: risk assessments, method statements, accident books, RIDDOR reports, and any HSE correspondence
- Settle any disputes with clients, suppliers, subcontractors, or former employees. Open disputes create uncertainty that buyers price into their offers
When to Start
Ideally, begin preparation 12 months before you plan to go to market. This gives you time to address financial housekeeping, formalise contracts, complete ISO audits, and prepare TUPE-ready staff records without rushing. If you are considering selling within the next 6 months, start now with the highest-impact items: clean financials, documented contract portfolio, and current ISO certifications.
If you are not sure whether the timing is right, a confidential conversation with a sector specialist can help you understand where your business sits and what, if anything, you should address before going to market.
Pre-Sale Readiness Checklist
- Last 3 years of accounts prepared with add-backs schedule
- All contracts documented with renewal dates and values
- Contract renewal rate calculated
- ISO 9001, 14001, 45001 current with no pending actions
- TUPE-ready staff records complete
- Skills matrix prepared for operational team
- Subcontractor agreements documented
- Insurance certificates current and adequate
- H&S records up to date
- DBS checks current for relevant staff
- Asset register complete (equipment, vehicles, uniform stock)
- Client satisfaction records available
- Outstanding disputes or compliance issues resolved
Not Sure Where to Start?
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