How to sell a business
Selling well is a process, not an event. Here's the path we walk owners through — from getting ready to signing the final papers.
- 1
Get clear on why and when
Buyers ask early: why are you selling? Have a straight answer — retirement, a new venture, timing the market. Your reason shapes the deal, and being clear about your ideal timeline (and walk-away number) keeps you in control of the process.
- 2
Get your financials in order
Clean, believable numbers are the single biggest driver of a smooth sale. Have 2–3 years of profit & loss statements, balance sheets and tax returns ready. Separate personal expenses from the business and document your add-backs so a buyer can see the true owner earnings (SDE / EBITDA).
- 3
Get a realistic valuation
Most businesses sell on a multiple of earnings (SDE or EBITDA), adjusted for growth, risk and how dependent the business is on you. Anchoring to a defensible number — not a hopeful one — attracts serious buyers and avoids months of wasted conversations. This is exactly where an advisor earns their fee.
- 4
Make the business easy to buy
Reduce owner-dependence: document processes, empower your team, and put key relationships and contracts in writing. A business that runs without you is worth materially more than one that lives in your head.
- 5
Package it — confidentially
Create a short, anonymous teaser for the marketplace and a fuller information memorandum for qualified buyers. Protect sensitive detail behind an NDA (SellSide does this automatically) so competitors and staff don't learn you're selling.
- 6
Reach the right buyers
List where real buyers and investors look, and don't rely on a single channel. A curated marketplace plus targeted outreach beats posting once and hoping. Qualify enquiries early so you spend time only with people who can actually close.
- 7
Negotiate the whole deal — not just price
Headline price matters, but so does structure: cash up front vs. earn-outs, seller financing, what's included, transition support, and warranties. A slightly lower price with clean terms often beats a big number with strings attached.
- 8
Survive due diligence
Once you accept an offer, the buyer verifies everything. Surprises kill deals — so surface issues early and keep your documentation tidy. Deals most often fall apart here, from avoidable gaps, not from price.
- 9
Close and hand over well
Final contracts, funds transfer, and a planned transition. A thoughtful handover protects your legacy, your team and often the last slice of your payment (if any is tied to earn-outs).
Thinking about selling?
List your business in front of vetted buyers, or book a no-obligation call to talk through your options and what your business could be worth.