Owning a business


How to Sell a Business in 5 Steps

Paul Cronin

Paul Cronin

February 17, 2024 ⋅ 3 min read

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Selling your business as a small business owner is a complex undertaking and likely a skill you haven’t needed to develop yet. Whether you sell your business to an employee, someone in your network, to a stranger online, or through the help of a professional, Baton market’s team of experts has outlined the initial steps you can take on your own. Baton combines a traditional online marketplace approach with the expertise of in-house business brokers to help you find a motivated buyer quickly. Let’s dive in.

  1. Evaluate your business: Assess the current state of your business, including its financial health, market position, assets, liabilities, and potential for growth. Understand what makes your business valuable to potential buyers. You can prepare this information as a one-page summary to develop your own sales pitch and make your business easily understandable to buyers.

  2. Set realistic expectations: Determine your goals and expectations for the sale, including the desired sale price, timeline, and any conditions for the sale. You can start valuing your business through online business valuation calculators and similar businesses listed on online marketplaces such as Baton. Be realistic about the value of your business and the market conditions. Potential buyers can sense unrealistic expectations and this may deter them or delay your sale.

  3. Prepare documentation: Gather all necessary documentation related to your business, including financial statements, tax returns, contracts, leases, and any other relevant records from the last five years. Organize and review these documents to present a clear and accurate picture of your business to potential buyers. The more clear and comprehensive these documents are, the faster a potential buyer will be able to assess your business.

  4. Seek professional advice: Consider hiring a team of professionals to assist you with the sale, including a business broker, accountant, lawyer, and possibly a valuation expert. Their expertise can help you navigate the complexities of the sales process and maximize the value of your business. Baton market is an effective and speedy approach to assembling a team of experts. Get in touch with a broker through our homepage.

  5. Identify potential buyers: Determine the type of buyer you're targeting, whether it's another company in your industry, a competitor, a private equity firm, or an individual entrepreneur. Develop a strategy for reaching out to potential buyers, whether through direct contact, networking, or using online business-for-sale platforms.

These steps provide a solid foundation for beginning the process of selling your business. Keep in mind that selling a business can take time and effort, so patience and perseverance are essential qualities to have throughout the process.