Complete 10-Step Guide to Sell Your Small Business
Dylan Gans
March 20, 2023 ⋅ 6 min read
This article was originally written in March 2023 and has since been updated with new discoveries and research in 2025.
Selling a small business doesn’t have to feel like jumping through flaming hoops. Still, for many business owners, the process can feel overwhelming—especially when it’s your life’s work on the line. It’s time-consuming, packed with legal documents, and if you’re not careful, could mean leaving money on the table.
That’s why we’ve built this no-fluff guide: To show you exactly how to sell a business efficiently, confidently, and for the best price. Whether you’re stepping away for retirement, exploring a new venture, or ready to turn your business equity into something more liquid, these steps to sell a business will walk you through how to make it happen.
And if you're looking for smarter support along the way? Baton Market offers valuations, pre-vetted buyers, and tech-enabled tools that make selling businesses smoother than ever.
Let’s dig into what it actually takes to sell a business the right way.
Step 1: Decide If Selling Is the Right Move
Many entrepreneurs reach this point for different reasons. Maybe it’s retirement, burnout, a strategic opportunity, or even a shift in personal priorities.
Whatever your reason, the most important first step in the selling process is making sure it aligns with your long-term exit strategy. There are many important things to consider when selling a business—from timing and taxes to personal legacy and financial needs.
Ask yourself:
Do I want a clean break or continued involvement?
What are my financial needs post-sale?
What legacy do I want to leave behind for my employees or customers?
A free valuation from Baton can help determine if the timing is right and what you might expect in terms of a return.
Step 2: Get an Accurate Business Valuation
Most business owners overestimate what their company is worth—usually because they’re too close to it emotionally. But guessing or pulling a number out of the air can turn away serious prospective buyers and delay negotiations.
Professional valuations look at:
Seller’s Discretionary Earnings (SDE)
EBITDA
Comparable sales from similar businesses
Intangible values like brand and customer retention
Baton provides a free, accurate, tech-powered valuation that reflects real market conditions and benchmarks from similar companies. It's typically within 10% of the final sale price—setting you up for a better deal from day one.
Step 3: Organize Your Financial Records and Documentation
Want a smoother sale? Get your paperwork in order before you go to market.
Most buyers—and especially strategic buyers or investment bankers—will want to see:
Profit and loss statements
Tax returns (at least 3 years)
Balance sheets and cash flow projections
Legal documents: Leases, contracts, IP, and permits
Clean records build trust and speed up the diligence process. It also helps reduce risk for buyers, which translates into fewer price reductions later.
Download our selling a business checklist to make sure you’re prepared with everything buyers want to see.
Step 4: Prepare Your Business for Sale
Think of this like staging a house. If your business is hard to run without you—or the books are a mess—it will scare off potential buyers.
Focus on:
Reducing owner dependency
Improving processes and documentation
Resolving outstanding debts or legal issues
Tightening operations and trimming unnecessary expenses
Evaluate core business operations to ensure they’re efficient and easy for a buyer to take over. Buyers want to envision themselves stepping into a business that runs smoothly. The more “turnkey” your business is, the faster you’ll find the right buyer.
Step 5: Choose Your Business Sales Strategy
Here’s where many business owners get stuck. Should you sell the business yourself, hire professionals like a business broker, or use a tech-enabled sale marketplace like Baton? For many entrepreneurs, choosing how to sell can feel like the most complicated process in the entire journey.
Let’s break it down:
DIY: Keeps costs low but is time-consuming and riskier if you're unfamiliar with the process. This can help you save money upfront, but may increase risk and delay closing.
Business brokers: Offer support, but brokers charge hefty commissions (up to 20%). That’s a big hit.
Baton Market: Offers expert support, pre-qualified buyers, and faster timelines—at one-third the cost of traditional brokers.
Learn more in our guide to selling a business.
Step 6: List Your Business and Qualify Buyers
Once you’re ready to go to market, it's about more than just putting up a listing. You need to attract serious, vetted buyers and avoid time-wasters (aka tire kickers).
Use platforms that:
Require NDAs and screen for buyer intent
Attract strategic buyers and operators
Simplify communication and info sharing
Baton lists your business to a network of pre-vetted buyers and handles buyer qualification so you don’t waste time with the wrong fit.
Step 7: Negotiate and Structure the Deal
The offer is just the beginning. The structure of your deal—how payment happens, the terms of transition, and what’s included—can make or break your outcome.
Key factors to consider:
Asset sale vs. stock sale
Seller financing or earn-out terms
Transition support, training, or retention of key employees
Contingencies around debt, accounts receivable, or equipment
This is where wealth advisors, legal counsel, and Baton’s team can help structure a win-win deal. Experienced advisors and platforms like Baton often leverage insights from past clients to inform smarter deal structures.
Step 8: Finalize Due Diligence
This is often the most detailed (and nerve-wracking) phase. The buyer and their advisors will review every inch of your business—financials, operations, HR, compliance, and more. Expect scrutiny not just on financials, but also on legal, HR, and other aspects that impact business continuity.
If anything’s off or missing, it can delay the deal.
Expect to share:
Updated financials
Tax burden documentation
Employee agreements
Legal contracts and sensitive information
Non-disclosure agreement (NDA) documentation
Being organized up front avoids headaches later. Baton’s team can help standardize this process.
Step 9: Close the Sale
This is the final step—where signatures meet wire transfers.
Work with a deal attorney who understands business sale contracts to navigate the:
Final purchase agreement
Asset transfers
Payment structure
Resolution of outstanding liabilities
You’ll want to double-check that all legally required steps are completed so you’re not liable after the sale.
Step 10: Plan for the Post-Sale Transition
You’re not quite done yet. Even after the check clears, many deals require the seller to provide support for a period of time.
This could mean:
Training the new buyer on systems and processes
Introducing employees and vendors
Handing off client relationships
Being available for questions over 30–90 days
Doing this well helps protect any earn-out or seller-financed portion—and sets your successor up to succeed.
You Only Sell Your Business Once—Make It Count
Selling a small business is a high-stakes decision. Many business owners have most of their net worth tied to their company. Rushing the process can cost you the highest price—or attract the wrong kind of buyers.
By following this step-by-step approach, you can minimize other expenses, reduce risk, and maximize value for a smoother sale. Whether you're managing an online business, internet businesses, or brick-and-mortar operations, Baton simplifies the selling process by combining tech and expertise to help you get the best price without the hassle.
Start with a free valuation to see where you stand—and get a clear path to a better exit.