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
Where the founder personally knows every customer, planned introductions and support may matter as much as signing the agreement.
What to check before moving forward
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.
People and employment obligations
Understand who performs critical tasks, what know-how sits with employees and what happens after ownership changes. Review contracts, costs and possible employment obligations with specialists.
Customer concentration
Examine customer mix and reliance on a few major accounts. High revenue can be fragile if it depends on a single contract or the outgoing owner's personal relationships.
Continuity of contracts
Review important contracts, including expiry, change-of-control and assignment provisions. Continuing a customer, supplier or lease relationship may depend on specific contractual terms.
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:
- Operating procedures and reliance on the owner
- Recurring contracts and customer churn
- Workforce, payroll costs and employment terms
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.