You have been growing your company for a long time and have decided to prepare for the sale of your business for top dollar.  The following are the basic steps for selling your business.

  1. Determine how much your business is worth. You can sell your business for what the market will pay. A business is generally worth a multiple of the earnings.  This means a value applied to the profit of your business.  Depending on the size of the deal, it can be 2-10 times the profit.
  2. Prepare your financial statements with your accountant.
  3. Find a broker or investment banker.
  4. Develop documents that outline the summary of your business.
  5. Market your business to potential buyers.  
  6. Let the buyer perform due diligence.  This process generally takes 60-120 days for the buyer to verify the financial statements. 
  7. Close the deal.  Sign the final contracts and let the handover process begin.

Kathy Delaney, CPA


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