Selling your business is a major life event. Whether you're retiring, moving on to new opportunities, or ready for a change, this guide will help you navigate the process and get the best outcome.
Why Sell Through Our Platform?
Traditional business brokers charge 8-12% commission1. On a $500,000 sale, that's $40,000 to $60,000 in fees. Our platform lets you list directly and keep more of your sale price.
You also maintain control. You decide who sees your listing, how much information to share, and who you want to work with. No middleman filtering your inquiries or pressuring you to accept low offers.
Preparing Your Business for Sale
Preparation is everything. The better your business looks, the more you'll get for it and the faster it will sell.
Get Your Financials in Order
Buyers want to see clean, organized financial records. Have at least three years of profit and loss statements, tax returns, and bank statements ready. If your books are messy, hire an accountant to clean them up before listing.
Buyers will verify everything, so be honest. If there are issues, address them now rather than having them come up during due diligence.
Document Your Systems
Write down how your business operates. What are the daily, weekly, and monthly processes? Who does what? What are the key relationships with customers and suppliers?
This documentation makes your business more valuable because it shows a buyer they can step in and run it successfully. It also demonstrates that the business doesn't depend entirely on you.
Strengthen Your Business
If you have time before selling, focus on improving what buyers care about most:
- Increase profitability: Cut unnecessary expenses and focus on your most profitable products or services
- Diversify customer base: If one customer represents more than 20% of revenue, that's a red flag for buyers
- Renew key contracts: Long-term leases, supplier agreements, and customer contracts add value
- Invest in equipment: Up-to-date equipment is more attractive than outdated machinery
Address Problems
Every business has issues. Fix what you can before listing. For problems you can't fix, be prepared to explain them honestly and show how a new owner could address them.
Setting the Right Price
Pricing is tricky. Too high and you won't get interest. Too low and you leave money on the table.
Most small businesses sell for 2-4 times their annual profit2. The exact multiple depends on industry, growth potential, and how much the business depends on the owner.
Consider getting a professional business valuation. A certified business appraiser can give you an objective assessment of what your business is worth. This helps you set a realistic price and justify it to buyers.
You can also look at comparable sales in your industry, though this information can be hard to find. Industry associations sometimes publish data on business sales.
Writing Your Listing
Your listing is your first chance to make an impression. Make it count.
Write a Compelling Description
Start with the basics: what the business does, where it's located, and how long it's been operating. Then highlight what makes it special:
- Strong financial performance
- Loyal customer base
- Prime location
- Growth potential
- Established systems and processes
Be specific. Instead of saying "good profits," say "average annual profit of $150,000 over the past three years." Numbers are more convincing than adjectives.
Include Key Information
Buyers want to know:
- Annual revenue and profit
- Number of employees
- Years in business
- Reason for selling
- Training and transition support you'll provide
Use Good Photos
Photos matter. Include pictures of your location, equipment, products, and your team. Good photos make your listing stand out and show buyers you're serious about the sale.
The Selling Process
Step 1: List Your Business
Create your listing on our platform. Fill out all the details, upload photos, and set your asking price. Once published, your listing will be visible to potential buyers.
Step 2: Respond to Inquiries
Buyers will contact you through our platform. Respond promptly and professionally. Answer their questions, but also ask questions of your own to make sure they're serious buyers.
You're not obligated to work with everyone who contacts you. If someone doesn't seem serious or you don't feel comfortable, you can decline to share more information.
Step 3: Share Financial Information
For serious buyers, share financial documents. Start with summary information, then provide detailed records once you have a signed confidentiality agreement.
Consider requiring buyers to sign a non-disclosure agreement before sharing sensitive information. This protects your business if the sale doesn't go through.
Step 4: Show the Business
Schedule visits for qualified buyers. Let them see the business in operation, meet key employees, and ask questions. Be honest and transparent.
Step 5: Negotiate
When you receive an offer, evaluate it carefully. Consider not just the price, but also:
- Terms of payment (cash vs. seller financing)
- Contingencies (what conditions must be met)
- Timeline for closing
- Your role during transition
Most offers come in below asking price. Decide your bottom line before negotiations start, and stick to it unless there are compelling reasons to accept less.
Step 6: Due Diligence
The buyer will verify everything. Be prepared to provide documents, answer questions, and allow inspections. The smoother this process, the more likely the sale will close.
Step 7: Close the Deal
Work with a lawyer to draft the purchase agreement. Make sure it covers all terms, including what's included in the sale, any training period, and how the transition will work.
Common Mistakes to Avoid
Here's what trips up many sellers:
Waiting too long to prepare. Start getting your business ready months before you want to sell. Clean books and good documentation take time.
Emotional pricing. Your business is valuable to you, but buyers care about numbers. Price based on market value, not what you think it's worth.
Being too secretive. Buyers need information to make decisions. If you're not willing to share financials or show the business, you won't get serious offers.
Ignoring red flags. If a buyer seems unqualified, can't get financing, or makes unreasonable demands, don't waste time. Move on to serious buyers.
Not planning for transition. Most buyers want some training period. Plan for how you'll help them learn the business without staying forever.
Tax Considerations
Selling a business has tax implications. The structure of the sale (asset sale vs. stock sale) affects how much you pay in taxes. Consult with a tax professional before finalizing any deal.
Generally, you'll pay capital gains tax on the profit from the sale. There may be ways to structure the sale to minimize taxes, such as spreading payments over multiple years.
Getting Help
While you can sell on your own, professional help can be valuable:
- Accountant: To prepare financial statements and advise on tax implications
- Lawyer: To draft contracts and handle legal aspects
- Business appraiser: To determine fair market value
- Tax advisor: To minimize tax liability
Next Steps
Ready to list your business? Create your listing today. It takes just a few minutes to get started.
Have questions? Check out our FAQ page or contact us for help.