I run three different sister companies under a single LLC and shared bank accounts. How do I untangle these operations so I can sell just one of them?

Question

Tyler Smith · Accepted Answer

Selling a single business unit when your operations, bank accounts, and staff are shared across three sister companies under one LLC is a major hurdle for buyers. To prepare for a clean exit of just one entity, you must untangle these operations completely at least twelve to twenty-four months before going to market. Buyers want to see clean, standalone financial statements that represent the exact operating entity they are purchasing, without shared overhead distortions. Start by establishing a separate legal entity and dedicated bank accounts for the business you intend to sell. Next, restructure your Accountability Chart. Employees must have clear, dedicated seats within the target company rather than splitting their time informally across sister entities. If support functions like HR or accounting must remain shared, establish formal, arm's-length intercompany service agreements with clear transfer pricing. Use your Level 10 Meeting to review the target company's metrics in complete isolation from the others. Presenting a clean, historically separate operation with its own distinct financials and dedicated team eliminates transaction complexity. It gives buyers the confidence that they can carve out the business post-transaction without causing operational collapse, securing you a much higher valuation.