Once the decision is made to sell, and the owner can articulate why they want to sell their business, the process begins. Here is the simplified version:

1. Maintain the physical appearance of your business and it’s marketing collateral, including all web presence.
2. Obtain prior three years of income tax returns or financial statements to provide to the business broker for valuation work.
3. The owner and broker discuss the valuation presentation and determine a sales price.
4. Consider financing. Buyers almost always need some sort of financing. Seller financing is often an attractive component of the transaction, though by no means is it the only way to go.
5. Once a price is determined, the broker prepares a Confidential Business Report (CBR) for purposes of marketing the business. The owner, taking into account the important sensitivity of confidentiality, will be review in depth.
6. Go to the market. The business is advertised to the public by methods deemed appropriate for the particular industry, market, and degree of anonymity.
7. Potential buyers are screened for their financial capability. Once they are marked as viable and sign a confidentiality agreement, they can receive the CBR.
8. The broker will set meetings between the seller and potential buyers.
9. Offer to purchase is presented and negotiations begin.
10. Offer is accepted and the “due diligence” period begins. Other contingencies may be part of the purchase agreement. Deposit (earnest money) will often be provided by the buyer.
11. Contingencies are removed and the deal is closed.