Prepare to Sell Your Business
Once you've decided to sell and determined which outcomes you care about, preparation is key to marketing the business, finding buyers, and negotiating effectively.
Gather Required Documentation
Gather historical company information stretching back over the lifespan of the business and prepare organized overviews covering:
Financial Statements
Detailed income statements, balance sheets, and cash flow statements for each year. If business is seasonal or cyclical, provide monthly financials for 3+ years.
Organizational Details
All locations/facilities, products/services offered, legal entity structure, leadership hierarchy, and headcounts.
Customer Information
Breakdown of customer concentration, retention rates, how accounts are acquired/managed, and what constitutes a profitable target customer.
Growth Plans
Quantitative financial projections and qualitative descriptions of expansion opportunities through adjacencies, target segments, etc.
Additional Documents to Consider
Organizational chart of employees
Compensation and tenure of employees
The current backlog of work
Sample exclusivity agreements with suppliers or distributors
Details surrounding a particularly large customer (i.e., contracts)
Asset list
Make the Health of Your Business Clear
Seasoned buyers and investors focus on business fundamentals: gross/net margins, pricing power, market position, comparison to competitors, not unchecked growth projections.
Highlight stability first and growth second. Transparently address known operational risks rather than appearing evasive.
Should You Use an Intermediary?
Conventional wisdom says you need a broker. We challenge that assumption.
Brokers often take 10-15% of the sale price. Some are worth it, guiding you expertly through the process. But others simply make matches, provide templates, and cash checks.
At a minimum, you should hire a competent attorney and accountant to advise you during the sale process. But there's a decision to be made around a general deal advisor, also known as a broker, intermediary, or investment banker.
Why Brokers May Not Be Worth It
They don't have the same incentives you do
Less incentive to find the right kind of buyer for non-financial factors
Incentive to sell as quickly as possible, which may not fit your goals
Take 10%+ cut after you spent your life building the business
Where to Find an Intermediary
The intermediary market is heavily fragmented. Organizations and certifications to research:
Accredited in Business Valuation (ABV)
Alliance of Mergers & Acquisitions Advisors (AM&AA)
Association of Corporate Growth (ACG)
Certified Valuation Analyst (CVA)
CM&AA Certification
International Business Brokers Association (IBBA)
M&A Source M&AMI Certification
Our Recommendation
You'll often get better results by connecting directly with buyers rather than going through an intermediary. If you do decide to use one, be prepared to invest real time vetting them: many specialize in specific industries or only take referrals.
We generally don't recommend hiring a broker in the early stages. Start by exploring direct connections first. Rejigg can help you get started.
Know Your Numbers Before You Start
Having clean financials is essential. Our free valuation calculator helps you understand what metrics buyers care about and what your business might be worth.
Get Your Business Ready to Sell
Rejigg helps owners prepare for and navigate the sale process. Connect with pre-vetted buyers on your terms.
Get Started Selling