Selling your business: five key steps

Selling a business means preparing both the operation and its handover. A buyer needs to understand what you have built, check their assumptions and imagine its future.

1. Make the business easy to understand

Gather recent accounts, key contracts, permits and employee information. Explain exceptional costs and the owner’s remuneration. Identify the assets included in the sale.

Document processes and important commercial relationships. An organisation that depends less on one person is easier to hand over. Define your own timetable and the transition support you could offer.

2. Build a well-supported valuation

Profitability, assets, prospects, risks and dependence on the owner all contribute to the analysis. An indicative valuation opens a discussion; it does not determine the price at which a sale will close.

Compare methods with your accountant or adviser and consider the implications of the chosen structure: an asset sale or a share transfer. Your net proceeds also depend on fees and the tax treatment of your circumstances.

3. Present the opportunity discreetly

Prepare a concise public presentation without information you wish to reserve for confidential discussions. Describe the activity, region, strengths and figures you are comfortable publishing. Keep contracts, detailed accounts and sensitive information in a separate file.

On Avidia, you can choose your photos, visual theme and highlights. Candidates accept a confidentiality undertaking when requesting a dossier. Find their contact details under “My contacts”, then agree with them on the information and channel to use.

4. Qualify buyers and negotiate

Discuss candidates’ experience, plans, availability and funding options. A letter of intent can set out the scope, indicative price, deadlines and conditions to satisfy.

Then organise financial, legal and operational checks. Clarify payment, warranties, debts, stock and the transition period. The SECO SME portal explains the role of due diligence, in German.

5. Sign and make the handover work

Have the contracts and formalities checked for your type of transaction. Prepare an inventory, payment timetable and list of approvals required before handover.

Plan communication with the team, customers and suppliers. Agree your availability after the sale and when you will step back. The handover continues through the buyer’s first weeks of operation.