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What to Expect When Selling Your Business

Selling Your Business - A Step-by-Step Guide

Selling your business is a major financial and personal decision. At TAMBAY Mergers & Acquisitions, we streamline the process, ensuring a profitable, smooth, and well-structured transaction. Here’s what to expect from start to finish.

Step 1: Business Assessment & Valuation

Before listing your business, we conduct an in-depth evaluation to determine its market value and prepare key documents.

What We Analyze:

  • Financials: Profit & Loss Statements, Balance Sheets, and Tax Returns (last 3 years)

  • Operational Structure: Employee roles, supplier agreements, business processes

  • Legal & Compliance: Licenses, permits, contracts, and any pending disputes

  • Assets & Liabilities: Inventory, equipment, real estate, debt obligations

  • Market Positioning: Industry trends, buyer demand, and competitive advantages
     

🔗 Related Resource: Understanding Business Valuation - Investopedia

This phase is critical in setting realistic expectations and attracting serious buyers.

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Step 2: Preparing for the Sale

Once we understand your business’s value, we create a Confidential Information Memorandum (CIM)—a professional marketing package used to attract buyers.

Confidential Seller Interview

To minimize disruptions and unnecessary buyer meetings, we conduct a recorded seller interview where you answer key buyer questions in advance. This allows buyers to learn about your business before engaging directly with you, saving time and improving efficiency.

Step 3: Marketing & Finding the Right Buyer

Our multi-channel marketing approach ensures your business gets maximum exposure while maintaining confidentiality.

Where We Market Your Business:

Buyer Vetting Process

We ensure only serious buyers gain access to detailed information:

  1. Non-Disclosure Agreement (NDA) –- Buyers must sign an NDA before reviewing your CIM.

  2. Buyer Qualification –- We verify financial capability and industry experience.

  3. Confidential Business Overview –- If qualified, buyers receive the CIM and high-level details.

  4. Request for Proposal (RFP) –- Interested buyers submit a structured offer with key terms.

Abstract data flow with charts, graphs, and legal documents representing business valuation and financial analytics process

Step 4: Negotiating Offers & Buyer Interviews

Once qualified buyers express interest, we guide you through offers, interviews, and negotiations.

The Offer Process: 

  • Indication of Interest (IOI) - A non-binding offer with proposed terms

  • Letter of Intent (LOI) - A formal offer outlining price, terms, and contingencies (Understanding LOIs)

  • Buyer-Seller Meeting - You meet the top candidates for final discussions

  • Offer Selection & Negotiation - We structure the best deal, ensuring your interests are protected

Step 5: Due Diligence

After signing an LOI, the buyer conducts due diligence—a deep dive into your financials, operations, and legal standing.

Documents Buyers May Request:

  • Tax Returns & Financial Statements

  • Employee Contracts & Payroll Records

  • Supplier Agreements & Lease Contracts

  • Client Lists & Revenue Sources

  • Legal Documents & Pending Litigation

Step 6: Closing the Sale

Once due diligence is complete, we finalize the transaction through a purchase agreement and legal review.

What to Expect at Closing:

  • Final Contract Signing - Purchase agreements, financing terms, and closing documents

  • Transition Plan Implementation - Training & consulting period for the new owner

  • Final Payout & Seller Financing Terms (if applicable)

  • Non-Compete Agreement - Prevents seller from competing in the same market

Step 7: Post-Closing Transition & Seller Involvement

A smooth transition is essential for buyer confidence and business continuity. Most sales include a post-closing training period, where you assist the new owner.

Common Post-Sale Terms:

  • Seller Training Period: 2 weeks (included in sale at no extra cost)

  • Consulting Agreement (Optional): Paid advisory role for 3-12 months

  • Seller Financing (If Negotiated): Structured payments from buyer

  • Earn-Out Agreements: Additional payouts based on business performance milestones

How Long Does It Take to Sell?

Selling a business is complex—it’s not like selling a house. The average timeline is 6 to 12 months, depending on:

  • Industry & market demand

  • Business financials & buyer financing options

  • Legal & due diligence process

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TamBay’s commitment: We streamline each phase to ensure a fast, secure, and profitable sale.

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