Selling a business combines preparation, disclosure and negotiation. The aim should not be to promise a quick exit but to present the company clearly while protecting its day-to-day operations during buyer discussions.
Practical example
A deferred-payment offer may look better than an all-cash bid, but its value depends on security, risk and timing.
What to check before moving forward
Negotiating terms
Negotiate the full package, not only the headline price. Stock, debt, deferred payments, warranties, timetable, seller support and exit conditions can change the real economics of a deal.
What the asking price includes
Check what the asking price covers: equipment, stock, property, deposits, cash and any debt adjustments. A headline figure without a breakdown cannot reliably be compared with other deals.
Valuation methods
Do not treat one valuation multiple as a definitive appraisal. Consider sustainable earnings, assets, risk, growth prospects and genuinely comparable transactions before forming a value range.
Conditions for completion
Separate essential closing conditions from preferences. Financing, permits, leases and the outcome of diligence may determine whether the transaction can complete.
Preparing for completion
Plan completion around outstanding conditions, deliverables, payments and post-closing responsibilities. An agreement in principle is not the same as a properly completed acquisition.
How to use this guide
Start by requesting sources for each important claim and noting what remains unverified. Cross-check answers against records, visit the operation where appropriate and bring material risks to an adviser before committing. Never fill missing financial figures with your own assumptions.
Evidence worth requesting before you proceed
A sales description is a starting point, not proof. These documents help distinguish verifiable facts from expectations:
- Valuation assumptions and adjustments
- Earn-out formula and payment conditions
- Current third-party contracts
Request information appropriate to the negotiation stage and respect confidentiality arrangements. Sensitive documents may be shared only after a buyer is identified.
Final takeaway
A sound transaction starts by defining what changes hands, checking the facts and documenting the agreement. Use this guide as a map of questions, not a replacement for a review tailored to the actual business.
General information only; not personalised legal, tax or financial advice. Rules depend on the transaction and may change.