How do I sell my business?
Short Answer
Prepare the business and its evidence base, agree a valuation view, appoint an adviser, market to a curated buyer list under NDA, negotiate heads of terms, then complete after due diligence.
Full Explanation
Selling a business follows a recognisable path, and most of the value is won or lost before you ever reach a buyer.
First, prepare. Give yourself twelve to twenty-four months to reduce founder dependency, tidy contracts, protect your intellectual property and normalise the numbers so a buyer can see the real earning power. Second, understand what you are worth: buyers apply a multiple to normalised earnings and set that multiple on the quality of your intangible assets, so document them. Third, appoint an adviser or broker suited to your size, who prepares a teaser and an information memorandum and approaches a curated buyer universe under a non-disclosure agreement. Fourth, negotiate: indicative offers lead to heads of terms and an exclusivity period, then due diligence, then the sale and purchase agreement and completion.
The single biggest lever is time. Owners who start early defend their price with evidence rather than conceding it under diligence. For the full route, see the owner's guide to how to sell a business and the 24-month exit plan. To build the evidence a buyer will demand, see Opagio Intangibles in action.
Related Glossary Terms
Related Questions
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Heads of terms is the short document recording the main commercial terms a buyer and seller have agreed in principle — price, structure, earn-out, con...
It depends on size and complexity. Business brokers typically suit smaller, simpler sales; corporate finance or M&A advisers suit larger or more compl...
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