Buyers will want to know why you’re selling. Common reasons include:

• Retirement
• Health issues
• Pursuing other opportunities
• Financial difficulties
• Market conditions

Having a clear reason will help position the sale in a positive light.

To maximize the value of your business and attract serious buyers, you need to ensure it is in the best possible shape. Key steps include:

• Financial Preparation: Organize financial statements, tax returns, and profit/loss statements for at least the past 3 years.
• Operational Improvements: Ensure business operations run smoothly without heavy reliance on the owner.
• Legal & Compliance Check: Ensure all contracts, leases, permits, and employee agreements are up to date.
• Valuation: Get a business valuation from a professional to determine a fair market price.

A professional business valuation will help you set a competitive asking price. Common valuation methods include:

• Asset-Based Approach: Calculates the value of tangible and intangible assets.
• Earnings Multiplier: Applies a multiple to the net income or EBITDA.
• Market Comparison: Compares similar businesses recently sold.

A Confidential Business Review (CBR) or Offering Memorandum is a document that provides potential buyers with key business details while maintaining confidentiality. It typically includes:

• Business overview
• Financial performance
• Growth potential
• Key assets and intellectual property
• Customer and supplier relationships

• Internal Sale: Sell to employees, partners, or family members.
• Direct Outreach: Approach competitors or industry investors.
• Business Brokers & M&A Advisors: Brokers can connect you with serious buyers.
• Online Listings: Use platforms like BizBuySell, BusinessesForSale, or industry-specific marketplaces.

• Require buyers to sign a Non-Disclosure Agreement (NDA) before sharing sensitive information.
• Assess their financial capacity and industry experience.
• Ensure they are genuinely interested and not just competitors seeking information.

• Price Negotiation: Based on valuation and buyer offers.
• Deal Structure: Full sale vs. partial sale vs. earn-out agreements.
• Payment Terms: Lump sum vs. installment payments vs. seller financing.
• Transition Period: Define if you will stay for a transition period to help the new owner.

The buyer will conduct a thorough review of your business, including:

• Financial records
• Contracts and agreements
• Employee details
• Operational processes

Be prepared to provide requested documentation and answer questions.

Once due diligence is complete:

• Letter of Intent (LOI):
  • Outline the key terms of the deal.
• Purchase Agreement:
  • Get a legally binding Agreement of Purchase prepared and executed.
• Closing:
  • Transfer ownership, assets, and contracts.
  • Ensure all legal and regulatory requirements are met.

• Train the new owner (if agreed).
• Ensure a smooth transition for employees and customers.
• Move forward with your next personal or professional goals.