How-to Guides

Expert Articles and How-to Guides on Business Sale

A collection of how-to guides, expert articles, and case studies. Segmented by the 4-track framework of the business sale process.

Top 5 Guides on Selling a Business

  1. Business Valuation Methods
  2. Tax Considerations When Selling a Business
  3. How to Value a Business: a Step-by-Step Valuation Guide
  4. How it Works to Sell a Small Business - A Complete Guide
  5. How to Sell a Restaurant: 5 Hints for the Owner

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Checking the Status

How it Works to Sell a Small Business - A Complete Guide

This is a complete guide to selling a small business. Topics discussed: hiring a broker vs DIY, business valuation, legal questions, tax implications, steps of the sale, confidentiality, etc. Small business owners should consult with this Guide before committing any actions.

How to Sell a Restaurant: 5 Hints for the Owner

Selling a restaurant or a café is more complicated than selling a business in general. As the owner, you have to go through a time consuming process to come up with a good exit plan.

How to Transfer Your Business to a Family Member

Transferring your business to a family member, to your son or daughter, requires planning and tax considerations. You must figure out what your retirement needs are and the benefits of either selling the business to a family member or giving it to them as a gift.

How to Sell a Sole Proprietorship

A sole proprietorship is a business without a separate legal entity. Find out how to sell such a business and what you must know prior to transfer the ownership. Due diligence and tax implications addressed.

Selling a Business to Employees

Learn how to sell a business to employees, or to management by implementing ESOP (Employee Stock Ownership Plan) or MBO (Managemet Buyout).

12 Ways to Exit Your Business

Exit strategy is something that every business owner looks for at some stage of their life. Even if you are a small business owner, you need to figure out the right way to leave your company and hand over the keys.

Selling Your Business to a Competitor

Selling your business to a competitor can mean saving time and money from trying to find a third-party buyer. Competitors are already familiar with the industry of your business and they know how to manage it properly. Owners just need to be wary of the risks involved by learning how to protect themselves throughout the sale.

How to Sell a Franchise Business

Selling a franchise business can be easy for finding buyers but tricky when it comes to the terms and conditions set forth by the franchisor. Franchisees must learn the rules, restrictions, and obligations of reselling their franchise to a new buyer.

Selling a Business: How To Communicate Your Decision

This article guides you through the process of communicating your decision to sell your business - externally and internally. Use the Communications Plan template provided.

How Long Does it Take to Sell a Business

Learn about the length of time it takes to sell a business. All information is backed by statistics and verified information. Then, learn how to speed up the sales process by implementing a series of strategies which can motivate the buyer to close the deal faster.

Is Your Business Sellable?

The primary reason businesses are not salable is that business owners fail to plan for the sale. Unrealistic valuation, customer concentration and poor accounting are common obstacles.

"Should I Sell My Business?" - 10 Reasons Why Owners Decide to Sell

Should you sell your business? Read about common reasons why small business owners are selling their companies. As it turns out, their choices are made up of 10 different scenarios that a business owner might find themselves in.

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How to Sell a Home-based Business

Sale of a home-based business is a challenging task for the owner. Read what to consider when preparing for sale and selling a single-person business.

How to Sell a Family Owned Business

The sale of a family-owned business can be tricky. You can sell it on the open market, or to another family member. There are pros and cons to each one of these options. Read about the tips, tricks, and traps with family businesses.

How to Prepare and Sell Your Pharmacy Business

Selling an independent pharmacy business is similar to selling any other company, but there are some additional wrinkles associated with this kind of sale.

A Short Guide to Selling a Small Business

This is a short set of instruction and guidance on exit strategies, principles of business valuation, due diligence, and drafting the buy-sell agreement. Aimed at small business owners selling their company.

Selling Your Business in 7 Steps

Selling a company is not an easy decision to make — you'll need to take several critical steps to plan and prepare your business for sale.

Maintaining Confidentiality When Selling a Business

When selling your company, keep it confidential. Read how does it work with your employees, customers, vendors, competitors, and potential buyers.

Why Are You Selling Your Business?

You've made a decision to sell your business. However before preparing your business for the sale, think again about your motivation, and the reasons. Why are you selling?

Is Your Dad Selling His Business?

Is your dad selling his business? You may want to provide him some help. Anyone who has ever run a small business knows just how hard it can be to start selling it.

How to Get the Timing Right for Your Business Sale

This is brief overview of timing your business sale. Let's simplify the question into three areas: your personal needs, your financial needs, and a realistic business valuation.

Are You Ready to Sell Your Business – Try the Checklist

Thinking of selling your business? Are you ready, and is your business well prepared? Here is a comprehensive checklist to keep your reasons and motivation to sell well organized.

Understanding the Emotional Side of Selling a Business

How do you feel about selling your company? It's obviosly not easy stepping back from a business you've spent your whole life building. Learn how emotions and your personality type play a large role in selling a business.

A Guide To Selling Your Online Business

A how-to guide on valuing and selling a web-based, internet business. Factors that will influence the worth of your website. Steps of the overall online business-for-sale process addressed.

Business Succession Planning - It's Never Too Late to Start

Thinking about retirement? It is never too late for a founder to lay down the plan and timelines for the transfer of business ownership and to prepare a solid business succession plan.

Answered: How to Sell a Home-based Business

The question was posed at Bizbuysell Community about how to sell a home-based or single-person business operation. See the answer by Donald M. Barrick, a Business Broker from Maryland.

Preparing for Sale

Business Valuation Methods

These common business valuation methods give you a solid platform for price negotiations: profit multiplier, discounted cash flow, comparables, and asset valuation. Examples included.

How to Value a Business: a Step-by-Step Valuation Guide

How do you value your business? Here is a practical, step-by-step guide to small business valuation. DCF - Discounted Cash Flow method discussed in detail.

How to Prepare a Business Selling Memorandum

Read about and how to prepare a Sales Memorandum when selling your business. It finalizes your sale proposition, the key selling points, and drives the promotional messages used in your advertising.

Selling a Business With Debt

Learn about debt considerations when selling a business. What happens to debt? Stock sale vs asset sales. How business value is affected by debt and more..

Enterprise Value

Enterprise Value (EV) is a measure of a company’s total business value. EV is the theoretical price for a business if it were to be bought.

How Do You Value a Business - Models and Formulas

What methods or formulas can be used to value a business? Read this how-to article about some common valuation models such as asset-based, comparative, option pricing and the DSF-equation.

Some Tips for Accurately Valuing an Existing Business

Common business valuation methods include: calculating the value of the underlying assets, finding the liquidation value, and calculating the future income potential of the business (also called as Discounted Free Cash Flow to Owners).

How to Sell a Business Fast

Selling a small business fast requires the owner to take certain steps in finding the right buyer and making preparations within the organization to prepare for the sale.

Seller's Discretionary Earnings as Basis for Business Valuation

Valuation of privately own companies earning income of 1 million or less is often based on Seller’s Discretionary Earnings (SDE), a common metric

How to Calculate Post-Money Valuation of a Private Limited Company

Post-money valuation (enterprise value) is determined by calculating number of factors. This goes beyond looking at debt, current market value and cash on hand.

Preparing Your Business for Sale

There are a number of things you can do to get the most out of the sale of your business. Here's a checklist to prepare your business for sale.

Selling Your Business During Divorce

A married businessperson needs to protect their business interests early on in case they get divorced from their spouse. Read how to make your business assets divorce-proof.

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Small Business Risk Management Guide

For a small business owner it's important to have a risk management strategy on place to increase business value. When preparing your company for sale, a risk management plan shall be a priority.

Items to Consider When Preparing Your Business for Sale

The purpose of this checklist is to help small business owners understand key topics when considering how to sell their business for the most money. Check out these 9 key items when preparing your business for sale.

Selling Your Business Step by Step — Scheduling the Tasks

Thinking of selling your business? Read this step-by-step guide about where to begin, and how to schedule the tasks and steps to orchestrate the sale process in logical and efficient way.

Preparing for Sale: Assessing the Need for Short Term Changes

How do you prepare your business for sale? Here is a simple framework to highlight potential change actions that help to improve salability and value of your business.

Review Your Business Before Sale, Prepare the Sales Memorandum

The Sales Memorandum is a key document in the business sale process. It’s the written review of the business that prospective buyers seek.

13 Things To Do Before Selling Your Business

Selling your company is a once-in-a-lifetime event. To get the best possible return on your investment, check these 12+1 things to do when preparing your business for sale.

6 Ways To Prepare Your Online Business for Sale in 2018

Planning to sell an online/internet business? Here are six things online (e-commerce) business owners need to do in the run up to a successful business sale.

Cashing Out: Tips for Valuing and Preparing Your Business for Sale

There are two ways for pricing your business for sale: 1) valuing on profits, 2) valuing on business potential. Good housekeeping, i.e. keeping the financials in tact, plays an important role as well.

FSBO: Selling a Business With or Without a Business Broker

Here are some pros and cons of selling a business with or without a business broker (FSBO). Make sure you weigh up all options when valuing the business, promoting your sale listing, and managing legalities.

Level Up: How To Increase Asset Value Right Before You Sell

In this article, we’re going to review some ways in which you can increase the value of a business right before you sell it, ultimately resulting in a better deal.

How To Mentally Prepare For A Successful Exit

Selling a business is a huge step, and it's important to have the right mindset throughout the process. Try these mental preparation techniques to make the sale seamless and emotionally appealing.

Selling a Business: Setting a Realistic Asking Price

It is better to be realistic when setting an asking price for your business. Make it right by considering all the key factors (13) when pricing your business for sale.

Going to Market

Where to Sell a Business in 2019

Where do you sell your small business in 2019? Which sites to consider for an online listing and what are the criteria to compare them? This is an overview of the top business for sale marketplace websites.

Selling Your Business Without a Broker

Selling a business? You mine as well go without a business broker and save time and money. Selling a company without a broker is reasonable, and not as hard as you might think.

Selling a Non-Profitable Business

How to sell a business that is losing money? Read this guide about your options for sale in general, plus selling a business by an auction is discussed.

How to Advertise Your Business for Sale in 2019

Learn how to plan, prepare and market your business for sale by selecting the most efficient and cost-effective ways and websites for online advertising.

Managing Your Business Sale: How to Qualify Prospective Buyers

Selling your business? This how-to guide addresses the question about qualification of serious buyers as prospects, and the subsequent refinement of these down to a shortlist.

Marketing Your Business for Sale in 2019

Selling a business? Read this article about how businesses with different size and profile are typically marketed and successfully sold.

How Attractive Is Your Business for a Buyer?

When selling your business, get started by thinking yourself into the mind of a potential buyer. What will be at the top of their list of considerations? Read how to prepare your business for a successful sale.

Responding to, and Communicating with Prospective Buyers

Read how to filter prospects from suspects during business sale process. What is effective communication, which information to provide, and when.

Selling a Business - Prevent Making Mistakes

Sellers of their businesses often make common mistakes. Some of the top mistakes can be found in this article.

Managing Your Time - Assessing Potential Buyers in Advance

During the business sale process you are receiving enquiries from potential buyers. However as with so much else in life, it’s the detail that counts.

How to Make Your Business Sale Listing Stand Out

These days buyers first look online to identify potential businesses to purchase. It's critical to devote some attention to your listing's content and Landing Page.

Using an Auction to Sell a Business

As a small business owner, you can offer your business for sale by auction. Done right, auctions can gain sellers even higher selling price than their minimum asking price. The best part is that the terms of the auction sale are usually more beneficial to you, the seller.

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Are You A Baby Boomer? Do You Want To Sell Your Business?

Do you own an established business that you are thinking about selling? And, dreaming about retirement? If you are getting ready to sell and you are not quite there yet, then this article is for you.

Closing the Deal

Tax Considerations When Selling a Business

Here's an insight into tax consequences when selling a business. Asset sale vs stock sale, capital gains tax explained. Learn how much tax you will pay when selling a sole proprietorship, partnership, LLC, or corporation.

10 Tips for Selling a Business With a Lease

As the seller you may want to draft your business lease agreement appropriately so that your buyer takes over all responsibility of the lease and that you do not. Tips for selling a business with a lease provided.

The 6 Legal Steps to Closing Sale of Your Business

The sale of a business involves taking certain legal steps to ensure that the copleting of the transaction is done properly, and with minimum risk for the seller. Find out what those steps are.

Capital Gains Tax Considerations When Selling a Business

When you sell your business, chances are that you will have to pay a capital gains tax. It's a tax on the company’s capital assets that you sell and make money on. Learn how to lower the tax burden.

Selling Your Business with Seller Financing

Learn how seller financing works for an owner selling his/her business. Pros, cons, and risks addressed with owner-funded business for sale transactions. Tax benefits of seller financing.

A Complete Guide to Selling Business Assets vs Stock Sale

A comprehensive guide to selling business assets vs stock (selling shares). Learn how it works with different types of business. Tax implications, as well as seller interests vs buyer interest, discussed in detail.

How to Sell a Business Using Installment Sales

Learn how to sell your business tax-efficiently via installment sales, a common method of seller financing. Special aspects with sole proprietorships, LLC's and corporations are addressed in detail.

Structuring and Financing the Deal

There are many options to be considered when structuring a deal to close the sale of your business. The trick is coming up with a deal that benefits both parties and provides incentives for the seller and buyer to sign.

What Information is Required for Due Diligence

Due Diligence is important for both buyer and seller in a business sale transaction. Read this article about what is Due Diligence, and what is required the seller to prepare for it.

10 Top Tips When Negotiating Your Business Sale

This may be the first time to selling your business. You want to be sure that you are covering all your bases before, during and after the negotiations with the buyer.

Letter of Intent to Buy a Business Explained

The Letter of Intent defines what a business sale deal may look like and provides parties (the buyer and seller) some time to perform Due Diligence, and finalize the buy-sell agreement. Also known as Proposal to Buy a Business, or Offer to Purchase a Business.

Asset Sale vs Stock Sale

Businesses are sold through assets or stock (shares) sale. The difference stems from factors such as what type the company is, and tax considerations. To decide, you need to understand the pros and cons with selling assets vs sale of business entity.

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Telling Employees That You’re Selling Your Business

If you are a business owner and you are planning to sell your business, then you need to inform staff, i.e., your managers and employees about the intended sale of the company. Read how, and when.

Prepare Draft of Legal Papers

Selling a business, required legal documents discussed: Non-Disclosure Agreement, Letter of Intent, Term Sheet, Business Sale Agreement and Bill of Sale.

Closing the Deal: How to Avoid the Pitfalls

Read about how to avoid pitfalls and mistakes when closing business sale. Topics included: negotiating the deal, getting paid, deal closure, communication and transition issues.

Why Professional Advice is Important When Selling a Business

There are two skillsets that are particularly welcome additions to a business sale team namely, legal and financial. It’s common for business owners to use qualified Attorneys and Accountants on a periodic basis.

Using Earn-outs When Selling a Business

When selling a business, an Earn-out (or Earnout) is an arrangement in which the seller finances the purchase and the buyer's payments are based on the earnings (such as profit, EBIT, EBITDA) of the business. Read about benefits, pitfalls and tax implications that are related to earnouts.