Welcome to this week's issue of The Exit Journal. Your weekly guide to everything you need to know to sell your online business.

Getting a Letter of Intent (LOI) from a buyer feels like victory. But here's what founders forget: an LOI is just the starting line.

The real test? Due Diligence.

This week, I navigated one of the trickier situations that can emerge during a deal. A buyer discovered a regulatory issue the sellers hadn't flagged upfront, not to me or the buyer. The issue had been resolved months ago with zero impact on the business. In fact, the business has just seen its highest months of revenue for the year! From the outside, everything in the business was tracking well.

So what’s the problem?

A regulatory issue is certainly a concern for any buyer, but the main challenge wasn't just the issue itself. It was the trust gap it created.

Here's what most people don't understand about due diligence: it's not just a financial audit. It's a trust-building process. Buyers are looking for reasons to believe in your business, and with that, reasons to walk away.

When something surfaces that wasn't disclosed earlier, it raises a significant question: what else don't I know?

My job as a broker in these moments is to rebuild that trust quickly. I walked the buyer through exactly what happened, the corrective actions taken, and the documentation proving the business was stronger as a result. We managed to get all parties on a call to talk it through, then we gave them space to process.

The deal is moving forward.

Here's what this taught me (again): transparency early beats explanations later. Every. Single. Time.

Louder for the back?

Transparency, trust and integrity are essential.

This is a pretty dramatic example, it’s unlikely you’re facing regulatory issues. But it’s a reminder that exits are built from the ground up. How can you build with integrity and transparency today, to ensure a smooth and lucrative exit tomorrow?

If there's anything in your business that could give a buyer pause, past disputes, operational quirks, staff hiccups: bring it up early. Frame it properly, show how you handled it, and move on.

Because in M&A, surprises kill deals. Transparency builds them.

As always, the best exits happen when you prepare before you're ready.

Did someone forward this to you? If you like it, you can sign up here.

-Stephanie Veal

P.S. If you're ready to start preparing for your exit, grab a time on my calendar. I'll walk you through what buyers look for, provide a business valuation, and can represent you in finding the right buyer.

Start a 'Due Diligence' folder today. Drop in copies of major contracts, regulatory correspondence, trademark filings, and anything a buyer might ask about. When due diligence starts, you'll have everything organized instead of scrambling to find documents from 3 years ago.

A marketplace in the travel niche sold at a 4.2x profit multiple, well above the typical range for marketplaces.

What made this deal move so fast? We received multiple LOIs within days of listing, creating competitive pressure that pushed the multiple higher and accelerated the timeline. The seller had clean financials, documented processes, and full transparency from day one. No surprises during due diligence meant we went from LOI to close in just 10 days.

Key Takeaway: Competition drives value. When you have a well-prepared business, buyers move quickly and pay premium multiples.

If you know someone considering an exit, send this email to them!

Cheers,

Stephanie Veal

I am an M&A Broker affiliated with Flippa. This content solely reflects my own views/opinions and does not reflect the views/opinions of Flippa.