Most businesses are sold through a broker, accountant or attorney because of the financial and legal requirements that must be met for a sale to proceed successfully. An owner can, however, sell their business themselves which is referred to as ‘Business for Sale by Owner‘.
The most important consideration is placing a value on the business. This is often undertaken by an appraiser who provides a valuation based on the business’s past income and profits. To support this the owner should have all financial documents up-to-date and available for inspection by the buyer. Sometimes a business improvement strategy can also be used to show how the business can grown by the prospective buyer.
Once a buyer has been found and a price negotiated, the owner will prepare a contract for sale that defines how the transaction will proceed and may include an escrow period before the sale is finalized.