Looking to sell your business but not sure where to start?

We have prepared a useful guide to walk you through the critical steps, from strategy to completion, ensuring you’re prepared for a smooth and successful sale.

1. Develop Your Exit Strategy

It’s never too early to plan your exit. Define your goals, decide on the best sale structure and seek tax advice to optimise your position. Identify potential buyers and get a business valuation to set realistic expectations. Understanding the transaction process and assembling a support team (including lawyers, accountants, corporate advisers, etc.) will ensure you’re prepared.

2. Get Your House in Order

Buyers will conduct due diligence on your business, including financial, legal and operational checks. Organise key documents such as financial records, contracts and licences, so you can quickly locate and provide them to a buyer during due diligence. A thorough preliminary audit will help to identify and address any gaps before the buyer conducts its due diligence investigations.  This will assist to reduce time and costs during due diligence, while boosting the buyer’s confidence and minimising post-sale risks.

3. Understand the Transaction Process

The sale process typically starts with an in-principle agreement, followed by a non-binding term sheet outlining key terms. In addition to being prepared for the buyer’s due diligence, we recommend that you undertake your own due diligence on the buyer, including to verify their financial capacity to complete the transaction.

The next stage involves negotiating the sale agreement, including conditions, warranties, limitations of liability and restraints.

Once the sale agreement is executed, the deal moves to completion, which can take several weeks. This involves finalising and signing ancillary documents, paying the balance of the purchase price, and handling post-sale tasks like regulatory filings and purchase price adjustments.

Download your free copy of our guide now to kickstart your business sale!

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