What Selling a Business Actually Looks Like
Learn exactly what happens when you sell your business. Complete step by step guide from valuation to closing so you know what to expect every step of the way.
Selling a business can feel overwhelming, especially if you've never done it before. The process involves multiple steps, various parties, and important decisions along the way. Understanding what to expect helps reduce anxiety and allows you to make informed choices.
This guide walks through the typical business sale process from initial valuation to closing. Keep in mind that every sale is unique, and timelines can vary based on your business type, market conditions, and buyer circumstances.
Initial Consultation and Valuation
We start with a confidential conversation about your business. You'll share information about operations, financials, and your goals. Based on this discussion and market analysis, we provide a realistic valuation range for your business.
This step helps you understand what your business is worth in the current market. There's no obligation to proceed, and everything discussed remains confidential.
Preparing Your Business for Sale
Once you decide to move forward, we help prepare your business for sale. This includes organizing financial documents, creating a confidential information memorandum, and identifying areas that might need attention before listing.
Preparation typically takes 2 to 4 weeks, depending on how organized your records are. The goal is to present your business in the best light while being transparent about its current state.
Buyer Identification and Outreach
We identify and contact qualified buyers who match your business profile. All buyers sign non disclosure agreements before receiving any detailed information. We pre qualify buyers to ensure they have the financial capacity and genuine interest.
This phase can take 2 to 6 months, depending on your business type and market conditions. We maintain confidentiality throughout, so your employees and customers won't know you're exploring a sale unless you choose to tell them.
Offers and Negotiations
When qualified buyers express interest, we help evaluate offers and negotiate terms. This includes purchase price, payment structure, transition period, and other important details.
Negotiations can take several weeks as both parties work through terms. We represent your interests throughout this process, helping you understand each offer and its implications.
Due Diligence
Once you accept an offer, the buyer conducts due diligence. This involves reviewing your financial records, operations, legal documents, and other business details. You'll need to provide access to information and answer questions.
Due diligence typically takes 30 to 60 days. We help coordinate this process and address any concerns that arise. Most deals proceed smoothly if your records are organized and you've been transparent from the start.
Closing and Transition
The final step involves closing the sale and transitioning the business to the new owner. This includes finalizing legal documents, transferring ownership, and often a transition period where you help the buyer learn the business.
Closing typically happens 60 to 90 days after accepting an offer, though this can vary. The transition period is usually 30 to 90 days, depending on what you and the buyer agree to.
Typical Timeline
While every sale is different, here's a general timeline you can expect:
- Preparation:2 to 4 weeks
- Buyer Search:2 to 6 months
- Negotiations:2 to 4 weeks
- Due Diligence:30 to 60 days
- Closing:60 to 90 days after offer acceptance
Total timeline: Typically 6 to 12 months from start to finish, though some sales can happen faster or take longer depending on circumstances.
Your Role vs Our Role
What We Handle
- Finding and qualifying buyers
- Marketing and outreach
- Negotiating terms and price
- Coordinating due diligence
- Managing the closing process
What You Handle
- Providing accurate financial records
- Answering buyer questions honestly
- Maintaining business operations
- Participating in transition period
- Making final decisions on offers
Complete Confidentiality
Your inquiry is completely confidential. I never share your information with buyers, competitors, or employees. All conversations are private until you decide to move forward.
Ready to Start?
Begin with a confidential conversation about your business and exit goals.
Start With a Confidential Valuation
Understand your business value and explore your options without obligation.
Prefer to talk directly?
(929) 806-2108