Selling a business is easier and faster, and usually pays more, when you prepare before you list. This guide covers each step, from getting your records in order to handing the business over to its new owner.
1. Get ready before you list
Buyers will want proof of what the business earns. Before you list, gather at least 12 months, and ideally two years, of sales records, bank statements and expenses, along with your lease, your licences, a list of equipment and the number of staff.
Fix what is easy to fix: renew licences that are close to expiring, and settle disputes or overdue bills that would worry a buyer.
2. Set a realistic asking price
Most small businesses are priced on the profit they make for their owner, multiplied by a figure that reflects how safe and lasting that profit is. Our guide to valuing a small business explains how to work yours out.
Look at similar businesses for sale to see what buyers are being offered, and leave some room to negotiate.
3. Write a listing that attracts serious buyers
A good listing says what the business does, roughly what it sells and earns, what is included in the price, and why you are selling. Clear photos of the premises and equipment make a big difference.
You do not have to reveal everything at once. On BizBay, the city and your contact details are hidden from visitors who are not signed in, and you can keep detailed figures for buyers who have signed an NDA.
4. Talk to buyers
Reply quickly: serious buyers are usually looking at several businesses at once. Use the first call to understand who they are, whether they can afford the business, and how soon they could buy.
Share detailed figures only after a buyer has signed a non-disclosure agreement.
5. Handle viewings and offers
Let interested buyers see the business, ideally outside busy hours so customers and staff are not unsettled. When offers arrive, compare more than the price: how and when the buyer will pay, how soon they can complete, and whether they can run the business.
6. Agree terms and sign
Write down exactly what is included in the sale, the payment terms, the handover period, and any promise not to compete. A lawyer should draft or review the sale agreement.
7. Hand the business over
Transfer the licences, the lease and the staff with the right authorities and the landlord, then introduce the new owner to your main customers and suppliers. Staying available for the agreed handover period protects the business you built, and the final payment if the price is paid in stages.
Common questions
How long does it take to sell a business?
It varies with the price, the sector and how well the business is prepared. Businesses with clear records and a realistic price sell fastest.
When should I tell my staff?
Usually once you have a serious buyer, so that news of a sale does not unsettle your staff or customers too early.
How do I keep the sale confidential?
Leave identifying details out of the listing, share figures only after an NDA, and arrange viewings at quiet times. BizBay hides the city and contact details from visitors who are not signed in.
What documents will buyers ask for?
Usually 12 to 24 months of sales records and bank statements, the main expenses, the lease, the licences, the commercial registration and a list of staff and equipment. Our due diligence checklist lists what buyers check.
Where to go next
This guide is general information, not legal or financial advice. Rules and requirements change, so check the details with the relevant authority or a qualified adviser before you act.