How long does it take to get a company ready to sell?

Two to three years is comfortable. Clean financials need a full trailing year at minimum, management depth takes time to prove, and contract timing cannot be rushed. Twelve months is workable with focus. Under six months means you are selling the company you have, not the one you could have had.

What do buyers look at first in a government contractor?

Customer concentration, the recompete calendar, set-aside dependence, and whether the key contracts will novate or assign. Then the financials, then the people. The order here follows the order of buyer diligence.

Does a low grade mean I should not sell?

It means the price and terms will reflect the gaps. Some owners sell anyway for good reasons. The point is to know which gaps are worth closing before you go to market and which are not.

Strategic Advisory · Twelve checks · About three minutes

Is my company ready to sell?

A readiness grade across the twelve things buyers ask for first, and the three fixes to make in order.

Twelve yes or no checks. No numbers required. Answer honestly: the grade is for you, and nothing is stored unless you choose to unlock the full list with your email.

The checks

0 of 12 answered

Three years of clean financial statements, reviewed or audited by an outside CPA.

Monthly closes, accrual basis, no material adjustments at year end.

Owner compensation, one-time costs, and personal expenses are documented as EBITDA adjustments.

A schedule with support for every add-back.

No single customer or contract is more than a quarter of revenue.

Measured on trailing twelve months of revenue.

You know which contracts require novation or assignment consent, and the path for each.

Federal contracts novate under FAR 42.12; subcontracts and vehicles have their own clauses.

Less than a quarter of revenue recompetes within the next eighteen months.

Including option years that may not be exercised.

Less than half of revenue depends on a set-aside status the buyer may not hold.

SDVOSB, 8(a), WOSB, HUBZone, and small business size.

Your cybersecurity posture is documented: a current system security plan and a SPRS score you can defend.

CMMC readiness is now part of diligence for defense work.

The business runs for thirty days without you making a decision.

Someone else owns capture, delivery, and the customer relationships.

Key personnel, including cleared staff and program managers, have retention agreements or a clear reason to stay.

Clearances and named key personnel are contract requirements, not conveniences.

Funded backlog plus priced options cover more than a year of revenue.

Funded, not pipeline.

You know the after-tax number you need from the sale, and what you will do the day after.

Most failed processes fail on the seller's side of the table.

Entity records, cap table, SAM registration, and accounting system are current and DCAA-ready.

Diligence goes faster and prices higher when the data room is already built.

How this works

What is behind the answer.

Owned by Strategic Advisory. Indicative and educational. Not an appraisal, a legal opinion, or tax or investment advice.

Most owners get one exit, and most of what decides its outcome is settled before a buyer ever calls: whether the financials hold up to a quality of earnings review, whether the contracts transfer, whether the business runs without you, and whether you know what you need from the sale.

Twelve yes or no questions. No numbers required. You get a grade and the three fixes that matter most, in the order to do them. The full list with what buyers will ask for on each is one email address away.

Readiness · questions

Straight answers.

How long does it take to get a company ready to sell?: Two to three years is comfortable. Clean financials need a full trailing year at minimum, management depth takes time to prove, and contract timing cannot be rushed. Twelve months is workable with focus. Under six months means you are selling the company you have, not the one you could have had.
What do buyers look at first in a government contractor?: Customer concentration, the recompete calendar, set-aside dependence, and whether the key contracts will novate or assign. Then the financials, then the people. The order here follows the order of buyer diligence.
Does a low grade mean I should not sell?: It means the price and terms will reflect the gaps. Some owners sell anyway for good reasons. The point is to know which gaps are worth closing before you go to market and which are not.

The other questions

Strategic AdvisoryWhat is my company worth?BeginEight questions · About five minutes

Wealth ManagementHow does the money work after I sell?BeginSeven questions · About four minutes

M&A AdvisoryWill my set-asides survive a sale?BeginFive questions · About three minutes