How do I sell my business?

What should you do before listing your business?

Getting your business organized before negotiating with buyers can help identify issues early. Review items such as:

• Financial statements and tax records.
• Customer, supplier, and employee contracts.
• Payoff letters.
• Lien releases.
• Business licenses and permits.
• Outstanding debts or legal disputes.
• Leases, equipment, and other business assets.
• Intellectual property and business records.
• If necessary, required member or shareholder approval. When selling an LLC or a corporation, internal approval may be legally required.

Having these documents ready can make due diligence more efficient and help answer buyer questions.

What happens during the sale?

Once you find a buyer, the focus typically shifts to negotiating and completing the transaction. The next few steps may be:

• Negotiating the purchase price and terms.
• Completing the buyer's due diligence review.
• Preparing and signing the purchase agreement.
• Obtaining any required approvals or consents.
• Transferring assets, contracts, or ownership interests.
• Completing the closing and updating business records.

The specific process depends on whether you're selling the entire business, ownership interests, or selected business assets.

What to do next…

1. Organize your financial, legal, and operational records.
2. Decide whether you're selling the business entity or its assets.
3. Review the purchase agreement and understand the terms before signing.
4. Complete the required ownership transfer and post-sale filings.

What to consider in your specific situation

• Whether you're selling the business entity or specific assets.
• The financial condition and obligations of the business.
• Existing contracts, leases, and employee arrangements.
• Required approvals or third-party consents.
• Federal, state, and local tax considerations.
• The size, industry, and ownership structure of the business.

Since every situation is different, consider getting more information through Rocket Copilot or an attorney review to move forward more confidently.