Sell · Step 2
Clean up the books and operations
~15 min
The cleanest businesses sell faster and at higher multiples. Period.
Financial clean-up (90 days)
- 3 years of audited or reviewed accounts (engage an auditor now)
- Reconcile bank, M-Pesa, POS, and accounting system monthly
- Move personal expenses out of the company — buyers normalise these, but it looks sloppy
- Stop paying yourself in dividends only; show a market-rate salary so buyers see real EBITDA
- Settle outstanding KRA, NSSF, SHIF balances and get a current Tax Compliance Certificate
Operational clean-up (90 days)
- Document standard operating procedures for every key process
- Move customer contracts to written, multi-year terms where possible
- Renegotiate the lease so there are 3+ years left at transfer
- Sign retention agreements with 3–5 key staff
- Build a 24-month forward sales pipeline / order book
Why this raises price
Every red flag is a discount. A business with audited accounts, diversified customers, retained key staff, and a 5-year lease sells for 1–2 turns of EBITDA more than the same business without those things.
Disclaimer
The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.
