How to Prepare Your Business for Sale

Buyers reward businesses that are easy to buy. The more organised your information, the more confident a buyer feels, and the less likely the deal is to stall during due diligence. Here is how to get ready.

Get your paperwork in order

Assemble the documents a serious buyer will ask for, ideally before you go to market:

• Two to three years of accounts and recent management figures
• A list of assets included in the sale (and anything excluded)
• Lease agreements, licences and key supplier or customer contracts
• Employee details and contracts (handled confidentially)
• Details of any loans, finance agreements or liabilities

Prepare for due diligence

Due diligence is where the buyer verifies what you have told them. Surprises at this stage kill deals. Review your own business as a buyer would, and deal with weak spots - an unsigned lease, an informal arrangement, a concentration of revenue in one customer - before they are discovered.

Protect confidentiality

Most owners do not want staff, customers or competitors to know the business is for sale. A good agent markets the business discreetly, screens enquiries, and only releases identifying details once a buyer has signed a non-disclosure agreement. Decide early how you will handle confidentiality, especially with employees.

Set expectations for the handover

Think about how long you are willing to stay on to train the new owner. A reasonable handover period reassures buyers and can support a higher price. Clarify what you want from the deal - a clean exit, an earn-out, or a phased withdrawal.

An experienced business transfer agent will guide you through all of this. Request a valuation to start the conversation.