10. Develop a clear exit strategy for your business before you actually need it. Don’t wait for a health or family crisis to force you into selling, or worse- closing, your business because you didn’t plan ahead.

9. Keep meticulous books and records. Savvy buyers will want to review your records as part of their due diligence after a Purchase Agreement is in place. The more organized your records, the faster your business will sell.

8. File your Business Tax Returns on time, and keep copies accessible. Your Federal Tax returns are the basis for valuing, marketing, and financing your business. Without them it’s impossible to even get the selling process started.

7. Businesses are primarily valued based on Historical Earnings and not historical investment. This can be a bitter pill for some business owners- especially if you have invested your heart and soul into building the business. Things like copyrights, patents, and equipment and real estate assets are also considered. An experienced Intermediary will help you understand how businesses are valued and get the highest possible sale price.

6. Consider financing a portion of the sale of your business. This makes your business much more attractive to potential buyers and SBA lenders, who typically provide the lion share of acquisition capital. It usually results in a higher sale price for you and can decrease your tax consequences.

5. Selling a business isn’t like selling a house. Your broker deals with issues of confidentiality, valuation, and a far more limited pool of buyers. Financing requirements are also vastly different than those that apply to home mortgage lenders. All of these issues affect the length of time it will take to finalize the transaction.

4. Not all Business Brokers are Licensed Real Estate Brokers, and very few Real Estate Brokers specialize in Business Brokerage. Choose a Broker who is both; because only a licensed Real Estate Broker or Agent can legal negotiate the sale or lease of the business property. And only someone who specializes in Business Brokerage is prepared to deal with the many details unique to business transition.

3. Choose your Broker wisely. Ask for references, and ask them if they have sold a business like yours before. Ask them how your business will be marketed and what steps they take to protect your confidentiality.

2. Once you list your business, it’s important to keep sales, inventory and/or production at normal, if not increased, levels. Buyers and lenders look particular hard at interim financial statements, so don’t let business “slack off.”

1. When it’s time to start negotiating, take a step back and allow your Intermediary to do their job. A seasoned Intermediary will remove emotions from the negotiation process, and work hard to get you the very best price and terms the market will bear.