Selling Your Business? Here’s What You Really Need to Know (Before You Ride Off Into the Sunset)

So… you’re thinking about selling your business. Maybe it’s time to retire on a beach, start a new venture, or just finally stop wearing all the hats. Whatever your reason, selling a business is a big deal, and not just emotionally. There are some important things to consider before you pop the champagne.

Let’s break it down, plain and simple.

1. Know What You’re Selling: Shares vs. Assets

First things first: are you selling the whole business or just the stuff in it?

• Share Sale: You sell your shares in the company. The buyer gets everything, that is, the assets, liabilities, contracts, and even that old office coffee maker.

• Asset Sale: You keep the company, but sell the equipment, inventory, client lists, and so on.

Why it matters:

Buyers often prefer asset sales (clean slate!), while sellers usually prefer share sales (hello, potential tax perks like the Lifetime Capital Gains Exemption, more on that in a sec).

2. Get Your Books in Shape

Nobody wants to buy a messy business. Think of selling your business like selling your house, you’ll want to tidy up before the showing.

• Clean up financial statements.

• Sort out outstanding debts or legal issues.

• Make sure your contracts and leases are up to date.

Pro Tip: If you're running your expenses through the business like it's your personal piggy bank, now's the time to clean that up. Buyers want to see a profitable operation, not your monthly wine club subscription.

3. What’s It Worth?

Spoiler: It’s probably not worth what you think it is.

Valuing a business isn’t just about multiplying your sales by some “industry standard” number. It depends on things like:

• Consistent profitability

• Customer loyalty

• Growth potential

• Whether or not you, the owner, are the business

Bring in a business valuator or an experienced accountant to give you the real scoop. (Yes, this might be where we come in. 😉)

4. Talk to Your Tax Pro (Early!)

Even if you don’t like numbers, you’ll love saving tax.

A good advisor can help you figure out:

• Whether you qualify for the Lifetime Capital Gains Exemption (LCGE) (up to $1M tax-free on a share sale, yes, really).

• Whether you should restructure before selling to clean things up or split income with family.

• What the tax hit will be if you just sell the assets instead.

This is not something you want to DIY from a Reddit thread or TikTok. Trust us.

5. Document Everything

No handshake deals here.

You’ll need:

• A letter of intent

• Non-disclosure agreements

• A proper purchase agreement

• (And maybe even a lawyer who doesn’t bill in 6-minute increments)

Make sure everything is spelled out. Selling a business can get messy if you’re not careful, especially if you're still involved during a transition period.

6. Plan Ahead—Way Ahead

Selling a business isn’t like selling a used car. It can take months (or even a year) to find the right buyer, do the due diligence, and finalize the deal.

So even if retirement is “a couple years out,” start prepping now. Future You will thank you.

Final Thoughts

Selling your business is a huge milestone. It’s the final chapter in one story, and the first chapter of another. Whether you’re cashing out to sip Mai Tais or gearing up for a new venture, just make sure you're going in with your eyes open.

Surround yourself with a great team (accountant, lawyer, business broker) and give yourself time. You only sell your business once (hopefully), so let’s do it right.

And hey, if you ever want to chat about your options, you know where to find us. 😉

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