Selling Your Business: A Step-by-Step Guide
Is it time to sell?
Selling your business is one of the biggest decisions you’ll ever make. Whether it represents your life’s work or a major chapter in your career, we’re here to help you navigate every step of the process.
This guide covers the most common questions and topics that come up when sellers begin to explore their options. If you have any questions that aren’t addressed here, we’re just a phone call or email away.
Congratulations on Taking the First Step
We created this page to provide insights, practical tips, and clarity around what it really takes to sell your business successfully. If you’ve already decided it’s time to move on, your next priority should be getting expert guidance. Working with a professional business broker can make all the difference—not just in getting your business sold, but in securing the *best* price and terms.
Top Questions Sellers Ask
1. What is My Business Worth?
This is usually the first question on a seller’s mind—and it’s a good one. Before getting too deep into the process, you’ll want to know what the market might pay for your business. But here’s the reality:
Valuation involves many factors. We’ll work with you to determine a realistic, market-driven price based on your financials, industry trends, and buyer expectations.
2. Who Will Buy My Business?
Buyers typically fall into three main categories—individual buyers, financial buyers, and strategic buyers. Each group brings different motivations, levels of experience, financial resources, and goals to the table.
Not every buyer is a good fit for every business. That’s why understanding the type of buyer most likely to see the value in your business is crucial to a successful sale.
A seasoned business broker will help you identify, attract, and qualify the right buyers—those who align with your goals and can carry your business forward.
3. How to Legally Transfer Business Ownership
Ownership is transferred through a legal sale, typically as either an asset sale or a stock/equity sale. The process involves a letter of intent, followed by due diligence, the drafting of a purchase agreement, and the signing of closing documents. You’ll also need to transfer leases, licenses, and notify the proper agencies. A broker, attorney, and CPA can help ensure everything is done correctly.
Insider Tip:
The market—not you, your accountant, your friend, or your attorney—determines your business’s value.
Preparing to Sell: What You Need to Do First
- Profit & loss statements (last 3 years)
- Business tax returns (last 3 years)
- Equipment and fixtures list
- Inventory estimate (if applicable)
- Loan details (amounts and payment schedules)
- Equipment lease agreements
- Franchise agreements (if applicable)
- Year-to-date financials
Insider Tip:
Make sure your records are accurate, clean, and up to date. It’s worth the time (and possibly the cost) to work with a professional to present your business in the best light.
Who Buys Businesses?
Buyers come in many forms, but they generally fall into three main categories:
Individuals and partnerships are often professionals looking to transition into business ownership. They may use personal savings, 401(k) funds, or real estate equity and are drawn to the freedom and potential returns of owning a business.
Strategic buyers are companies seeking to expand by acquiring businesses that complement their current operations. These deals can help them enter new markets or add new products, though confidentiality and valuation can be more complex.
Financial buyers—such as private equity groups and family offices—are focused on return on investment. They typically seek solid management teams and growth potential, often holding businesses for several years before selling.
Understanding who’s likely to buy your business—and what they’re looking for—can help you prepare for a successful sale. The right advisor can connect you with the most qualified and motivated buyers.
How to Make Your Business More Attractive
Make a Great First Impression
- Develop a professional website
- Increase your Google reviews
- Update your social media accounts (LinkedIn, Facebook, etc.)
- Clean up outdoor areas
- Repair or remove broken equipment
- Replace outdated signage
- Freshen up interiors with paint, lighting, and décor
- Maintain a solid inventory level
Create an Operations Manual
This doesn’t have to be complicated. A simple guide to how your business runs day to day can boost its appeal and help the transition go smoothly.
Insider Tip:
Include marketing materials, product samples, or menus if relevant. Don’t include proprietary details like customer lists or secret formulas.
Eliminate Surprises
Transparency builds trust. The more prepared and forthcoming you are, the faster (and more profitably) your business can sell. Avoid any unpleasant surprises by getting everything in order early—including outstanding issues, messy records, or unresolved contracts.
Still Have Questions?
Visit our Seller FAQ page for answers to questions like:
- How long does it take to sell a business?
- What can a business broker do—and not do?
- What can I do to help the process?
- What happens when there’s a buyer?
- Why is seller financing often critical?