Knowledge Base

The most comprehensive, easy-to-understand source of information for selling a small to mid-sized business.

1 - Preparation

In this section, we explore the planning stage for selling your business, such as increasing your business’s value and reducing buyers’ risk, when to inform your employees, and compiling key documentation for the sale.

Deciding to Sell

Should I Sell My Business?

The decision to sell your company is challenging. You have invested years or decades painstakingly building your business and have made countless sacrifices along the way. It’s an emotional determination that should not be taken lightly.

General Preparation

8 Signs You Aren’t Ready to Sell Your Business

Making the decision to sell your business is one of the most important choices that you will have to make as a business owner. Selling prematurely can lead to unexpected surprises in due diligence, lower valuation by prospective buyers, and even an inability to close the sale.

Tips on Preparing Your Business for Sale

Preparation makes execution look effortless. Considering that the sale of your business will likely be the largest sale you will ever make in business, it is foolish to neglect preparation.

Reducing Concentrations of Risk Before Selling Your Business

Concentrations of risk can have a significantly negative effect on the value of your business. The value of a business, or any financial asset, is a function of the relationship between potential return and risk. The higher the risk, the lower the value. The higher the return, the higher the value.

Employee Issues

Alternatives to Non-Competes with Employees

This article offers tips on when to use a non-solicitation agreement and confidentiality agreement and specific advice for using each tool to help protect the value of your business.

Specific Issues

Should I Buy New Equipment Before I Sell my Business?

As a general rule, you should not invest in new equipment or other hard assets when you are in the process of selling your business unless it immediately increases your SDE (seller’s discretionary earnings) or EBITDA.

Preparing Sale Documents