Thinking of Selling Your Business?
10 Key Things to Do Before Going to Market
If you’re considering selling your business, preparation is everything. A successful sale depends not only on how well your business performs but also on how ready you are to go to market.
Here are 10 essential steps to take before you list your business for sale:
1. Get Your Books and Records in Order
Buyers and lenders expect at least three years of clean, well-organized financial records. Accurate financials will speed up due diligence, help you justify your asking price, and improve the buyer’s chances of securing financing.
Make sure you’re working with an accountant or bookkeeper who can respond promptly to requests. One of the biggest deal killers is delayed financial reporting. If you need a referral to a reliable accounting professional, InterMountain Business Brokers can help.
2. Prepare an Equipment and Inventory List
Create a detailed spreadsheet listing all furniture, fixtures, equipment, and inventory. Include descriptions, serial or VIN numbers, quantities, and estimated used replacement values. Lenders, especially SBA lenders, often require this list—and failing to provide it quickly can delay or derail your deal.
3. Evaluate Your Team
Which employees are critical to operations? Will they stay on after the sale? Will you inform them before closing? What if the buyer wants to interview them? Employee-related strategies vary widely, and InterMountain Business Brokers can help you navigate this delicate part of the process.
4. Plan for Training
Buyers expect the seller to offer training and transition support. Think about how long it will take to train a new owner and what your training will cover. To boost buyer confidence, consider creating an operations manual to show during in-person meetings.
5. Review Your Lease
If your business operates from a leased space, review the lease terms. Will it be renewed? Are there rent increases ahead? If your landlord won’t release your personal guarantee, will you still be comfortable with the deal? Lease complications can affect valuation and financing—plan ahead.
6. Understand Business Valuation
Don’t rely on online calculators or generic estimates. A professional valuation from a reputable business broker—like InterMountain Business Brokers—takes into account industry trends, comparable sales, and your unique business strengths.
7. Consider Seller Financing
Most small business transactions include some level of seller financing—often because SBA lenders require it. If you’re unwilling to finance part of the deal, you may face delays or receive lower offers. Providing financing shows you have confidence in the business and helps secure a higher price. We can walk you through the pros and cons.
8. Get Mentally Prepared
Selling a business is rarely simple. The process is time-consuming, emotional, and often stressful. Deals can fall apart and then come back together. Expect it to take up to a year—and let an experienced broker handle the heavy lifting so you can focus on running your business.
9. Plan for Costs
In addition to broker fees, expect legal and accounting costs during due diligence and closing. And don’t forget the taxes—both state and federal—on the sale proceeds. Preparing for these expenses will avoid surprises down the road.
10. Work With a Trusted Business Broker
The right broker will guide you through every step, from valuation to closing. InterMountain Business Brokers has helped sellers across many industries navigate the sales process and secure the best outcome. Don’t go it alone.
Ready to sell your business?
These 10 steps will give you a strong head start—but there’s more to the process. Contact InterMountain Business Brokers for a free consultation and personalized guidance on how to successfully sell your business.