A small business sale has six stages and one constraint that governs the timetable: most buyers are borrowing, so a lender underwrites your accounts before anybody closes. Everything in the process either prepares for that or waits for it.
Get quotes to sell my business
Prepare, price, present
Three years of statements, tax returns that agree with them, a documented add back schedule, and the lease. Then price from completed transactions rather than asking prices. Then present, either on a marketplace, through a broker, or directly to somebody you already know is a likely buyer.
Screen, agree, verify
Take enquiries through a listing platform or a dedicated address, require a non disclosure agreement and evidence of funds before releasing the name and figures, and accept one offer with a written summary of the terms. Then diligence, where the buyer and their lender verify what you said.
What it costs
A commission if you use a broker, with a minimum that on a small sale can be a quarter of the price. A few thousand dollars each for a lawyer and an accountant, which is not the place to economise. Marketplace listings cost tens of dollars. The cheapest route is a known buyer with proper paperwork.
Other questions people ask
Do I need a broker for a small business?
Only if you cannot reach your likely buyers. A lawyer and an accountant are needed either way and cost far less.
What slows a small sale down?
The buyer's loan, almost always. Preparing the file the way a lender wants it is the fastest thing a seller can do.
When do I tell my staff?
Usually once the deal is certain rather than probable, with key people told earlier under their own agreements if the buyer wants them committed.
Can I sell if I have a loan on the business?
Yes. Secured debt is settled at closing out of the proceeds, so it reduces what you receive rather than preventing the sale. The lender's payoff figure is a standard closing item.