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
Negotiations may take weeks and diligence several months; promising a completion date before conditions are resolved creates false expectations.
What to check before moving forward
Preparing the business
Before marketing the business, organise records, identify weaknesses and prepare clear answers. A company that can be explained and documented is easier for serious buyers to assess.
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.
Due diligence before signing
Request supporting documents and test the claims made in the listing. A review commonly covers accounts, contracts, employment, tax obligations, licences and material legal risks.
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.
The owner handover
Agree how know-how, relationships and daily responsibilities will move to the new owner. Specify handover duration, the seller's role and limits on availability.
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
- Operating procedures and reliance on the owner
- Corporate records and ownership evidence
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.