Resources / Selling Your Business / The 14-Step Checklist for a Perfect Small Business Sale

The 14-Step Checklist for a Perfect Small Business Sale

Selling Your Business

Selling a small business requires careful planning and preparation. We have compiled this guide to use as a resource throughout the process to make sure everything goes according to plan, from identifying the right buyer and preparing financial documents to understanding the value of your business and negotiating with potential buyers.

 

    1. Collect and organise important documents such as profit and loss statements, tax returns, balance sheets, key customer contracts – anything that holds critical information about your business
    2. Craft a comprehensive inventory of your business’s assets to ensure they are properly tracked and assess their value
    3. Assemble your team of legal and financial experts who will help you throughout the process
    4. Determine the most likely buyers for your business based on factors such as size, location, industry and resources needed to operate it
    5. Coordinate with tax professionals regarding any taxes associated with the sale of the business.
    6. Formulate an asking price that is supported by market data, comparable sales, or an independent business valuation
    7. Prepare a sales memorandum that describes the key features of the business and its financial performance to prospective buyers
    8. Develop an advertising plan for targeting potential buyers and listing the business for sale in appropriate venues. Alternatively, you may contact qualified brokers to help list your business and qualify potential buyers
    9. Screen prospective buyers to ensure they have the financial resources and experience necessary to successfully operate the business.
    10. Negotiate all aspects of the sale, including price, terms and warranties
    11. Prepare a purchase agreement that includes all relevant details of the transaction, such as payment terms, financing arrangements and warranties
    12. Commence process to obtain necessary permits or licenses to transfer ownership of the business
    13. Ensure all documents are executed correctly and in a timely manner
    14. Notify current employees, customers and vendors of the sale and make necessary arrangements to transfer them to the new owner
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