Selling a business can be straightforward or challenging depending on preparation and circumstances. While some obstacles are beyond your control, many can be mitigated through proper preparation.
Important distinction: Preparing your business for sale is not the same as maximizing value. This is about following the process correctly.
Six Steps to Selling Your Business
1. Why Do You Want to Sell?
Understanding your motivation is critical. It’s the first question buyers will ask.
Common reasons include:
- Realizing value from hard work
- Retirement
- Falling out of love with the business
- Inability to manage at current levels
- Partnership disputes
Selling from a position of strength (healthy profits, strong business position) commands higher prices than selling during difficulties.
2. Timing Your Sale
Running an effective business keeps it “sale ready” whenever needed. However, some enterprises require time to organize operations.
Maintaining accurate records, developing systems, creating value, and retaining clients support both growth and future sale preparation.
3. Valuing Your Business
Proper valuation ensures comfort with potential extracted value. Accountants, business appraisers, or M&A brokers determine realistic valuations.
Remember: your business is only worth what someone will pay for it.
4. Hiring a Transaction Team
M&A teams guide owners through:
- Pre-sale preparation
- Marketing to buyers
- Assessing initial offers
- Negotiating best terms
- Managing due diligence
- Completing transactions
5. Due Diligence
Prepare comprehensive documentation across all business functions: finance, HR, contracts, environmental considerations, insurance, IT infrastructure.
Missing items delay completion. Spread collation tasks to maintain business operations.
6. Finding Buyers
M&A teams locate prospective buyers, creating competitive tension to maintain or increase purchase price. The “beauty parade” of presenting your business favorably is necessary for maximum value.
The Final Truth
A sale isn’t a sale until the money is in the bank.
Many deals fail for reasons outside your control. The more sale-ready your enterprise, the faster closure occurs. Building that sale-readiness is a key focus of business coaching in Northern Ireland, helping owners prepare for a successful exit long before they list.
Go deeper: Read the full Agency Exit Strategy Guide for a complete framework covering valuation, preparation, and negotiation.