If you’re thinking about selling your business, the process typically involves:
Preparing your financials and operations.
Determining your business’s value.
Deciding whether to work with a broker or go direct.
Finding and qualifying buyers.
Negotiating terms and structure.
Managing due diligence.
Closing the deal and planning your transition.
The best sales don’t happen by chance — they happen through preparation, realistic expectations, and choosing the right buyer.
If you’ve built a business over decades, you know how to run it. But selling it? That’s unfamiliar territory for most owners.
The questions come fast:
Where do I even start?
How do I know what my company is worth?
Do I need a broker, or can I do it myself?
What happens to my employees after I sell?
At Sixty74, we talk to owners every week who are at this exact crossroads. Some are ready to retire, some face life changes like divorce or health issues, and some simply know it’s time to hand the reins to the next generation.
This guide will walk you through the process, step by step — in plain language — so you know what’s involved and how to prepare.
Before you talk to a single buyer, you need to get your house in order. Buyers (and lenders) want clarity and stability.
What to do:
Clean up your financials — GAAP-compliant, 3–5 years of statements.
Separate personal and business expenses.
Normalize earnings (document add-backs).
Reduce owner dependence — empower your team.
Document processes and systems (SOPs).
Other helpful material: See our detailed post on 5 Steps to Make Your Business Sale-Ready Before Retirement.
Valuation isn’t guesswork, but it’s not an exact science either. Most small to mid-sized companies are valued as a multiple of normalized cash flow (SDE or EBITDA).
Factors that affect multiples:
Industry and growth potential.
Customer concentration risk.
Strength of the management team.
Quality of financials and systems.
Tip: Brokers and advisors can provide comps. Sites like BizBuySell’s Market Insights share quarterly valuation data.
You have two main paths:
With a broker: They prepare a CIM, market the business, screen buyers, and guide negotiations. IBBA-certified brokers are often the best fit for deals under $20M.
Without a broker: You’ll need to prepare materials, find buyers, and manage negotiations yourself. This can save fees but adds complexity. Some buyers, like Sixty74, have checklists to remove the complexity and help sellers collect the right information.
Broker perspective: See our post on What Brokers Wish Sellers Knew Before Listing.
Not all buyers are the same. We covered this in detail in How to Choose the Right Buyer for Your Business.
Buyer types:
Strategic (competitors, suppliers, customers).
Financial (private equity, investors).
Stewardship (operators focused on continuity and legacy).
Tip: Don’t just chase the highest bid. Ask buyers how they’ll treat your employees and customers.
It’s not just about price. Deal structure matters.
Cash at close: Clean but not always realistic.
Seller financing: Common in smaller deals.
Earnouts: Payments tied to future performance.
Equity rollover: Retaining a minority stake.
Tip: Work with your attorney and CPA to understand tax implications.
Due diligence is where deals succeed or die. Buyers will review everything — financials, contracts, HR, compliance, systems.
What to expect:
Requests for detailed documents.
Questions about customers, vendors, and employees.
Legal and compliance checks.
Best practice: Be organized and transparent. Surprises erode trust.
Once diligence is complete, you’ll move to final agreements, signatures, and closing. But the work isn’t done.
The first 100 days after close set the tone for employees, customers, and vendors. See our post on The First 100 Days: How We Transition Ownership Without Disruption.
Selling is more than financial. It’s emotional.
Are you ready to let go?
What will you do next?
How will you feel driving past your business a year from now?
The Exit Planning Institute reports that 75% of owners regret selling within a year — often because they weren’t emotionally ready.
Selling your business can feel overwhelming, but it doesn’t have to. With preparation, clear expectations, and the right buyer, you can secure both value and legacy.
At Sixty74, we work with owners who care about what happens after the sale. We protect employees, honor customer relationships, and scale responsibly.
If you’re considering selling and don’t know where to start, let’s talk!