Planning to sell your business in 2026? Our step-by-step guide explains how to prepare your business to maximize its value, starting today.
Yes! You can absolutely sell your company. You might wonder what the process is? Why do you need a Business Valuation? That’s where we come in!
In short, the process involved in selling your company starts with valuing the company, preparing financial documents to finding a buyer, further negotiating, and finally, closing with legal counsel. The key steps include improving profitability beforehand, maintaining confidentiality, and choosing between an asset or stock sale.
The Key Steps to Selling Your Company:
- Valuation: Determine your business’s worth using income, market, or asset-based approaches (e.g., multiples of earnings).
- Preparation: Organize financial records (tax returns, profit & loss statements) and, if necessary, make operational improvements to boost value.
- Identify Potential Buyers: Consider competitors, employees to find qualified buyers, or hire an advisor such as Neri Capital Partners.
- Structuring the Sale: Decide on an asset sale (transferring specific assets) or a stock sale (transferring the entire entity).
- Due Diligence & Closing: The buyer will inspect your records, followed by a signed sales agreement and transfer of ownership.
Whether you’re planning an exit, considering a sale, or simply want to know what your business is worth, understanding the basics of valuation is essential.
Common Frequently Asked Questions of Business Owners Who Want to Sell Their Company
Q) When should I start planning my business exit to achieve maximum value? A) At least 3-5 years in advance. We have the perfect tool that’ll give you valuable insight into your business.
Q) Do I need “Perfect Financial Records?” A) Not necessarily, but business owners need to have their records clean and accurate. Potential buyers will negotiate less or heavily discount if they don’t trust the numbers.
Q) How do Assets and Liabilities affect the business value? A) Assets add value and Liabilities reduce value, but a balance between the two impacts equity value.
Q) What is “Equity Value?” A) Equity value is Assets minus Liabilities — What the owner actually keeps.
Q) Can I sell my building with the sale of the business? A) Yes, real estate is included in the sale of your company, if applicable, but it is usually valued separately and added in the overall value.
Q) What about depreciated equipment? Does that depreciated equipment still add value? A) Yes.
Q) How do you recommend I start this process? I am not ready to sell, but I am curious and would like to learn more. A) Simply email a business advisor & exit strategist who will help you start the process. We do not pressure you, we simply want to help.
Written by Tim Uzar, Business Broker with Neri Capital Partners.