Selling a business is not like selling a house or a car. There is no standard price, no set of keys handed over on a Friday, and rarely a single clean transaction. For most owners it is the largest financial event of their lives — and, after decades of work, an emotional one too. This guide walks through every stage, in the order you’ll actually face it.
1. Get clear on why you’re selling
Before any spreadsheets, get honest about your “why”. Retirement, health, a new venture, or simply wanting your weekends back — each points to a different ideal outcome. A clean break suits some owners; others want to stay on for a handover, or keep the business in the family. Buyers will ask why you’re selling, so a clear, confident answer also builds their trust.
2. Start earlier than feels necessary
The price a buyer will pay is shaped by decisions made long before the sale. The strongest exits begin two to three years out — enough time to grow revenue, reduce risk, and tidy the parts of the business that quietly drag on value. Starting early doesn’t commit you to selling early; it keeps every option open.
“The best time to sell is when the business is performing well — not when you’re burnt out or forced to.”
3. Find out what it’s genuinely worth
You can’t negotiate from strength without knowing your number. Most small businesses are valued on their earnings — commonly by capitalising future maintainable earnings, or by applying an industry EBITDA or profit multiple (often two to five times). A good valuer triangulates two or three methods to land on a defensible range. Read our full guide to business valuation →
4. Prepare the business to sell
This is where value is made or lost. First, reduce how much the business depends on you — document processes, empower key staff, make yourself replaceable. Second, get your financials clean: three years of clear, reviewed statements speed up the sale and build buyer trust. Tidy your contracts and leases too — anything unresolved will surface in due diligence.
5. Broker, adviser, or sell it yourself?
A business broker markets your business, manages enquiries and protects confidentiality, typically for a commission. An exit adviser takes a wider view — tax, structure, timing and life afterwards. Larger or more complex sales often warrant both; very small businesses can sometimes be sold privately. See our guide to broker fees →
6. Go to market — discreetly
Confidentiality is everything. If staff, customers or suppliers learn of a sale too early, it can destabilise the very business you’re trying to sell. A broker runs a confidential campaign: an anonymised teaser attracts interest, and only qualified buyers who sign an NDA receive the detailed information memorandum.
7. Survive due diligence
Once a buyer is serious, they verify everything — financials, contracts, leases, licences, staff records and liabilities. Many deals fall over here when surprises emerge. The fix is to run your own due diligence first. Use our seller due diligence checklist →
8. Negotiate the deal — not just the price
Headline price is only part of the story. Terms matter enormously: how much is paid upfront versus deferred, whether there’s an earn-out, how long you stay on, and any restraint clauses. The contract of sale should be drawn by a lawyer and spell out exactly what’s included.
9. Plan for tax: CGT and GST
The profit on a sale is generally a capital gain, so capital gains tax applies. The small business CGT concessions can substantially reduce — sometimes eliminate — that tax. Eligibility is technical and structures often need to be in place well before you sell. Understand the CGT concessions →
10. Look after your people and obligations
When ownership changes, you have legal obligations to staff — entitlements must be correctly calculated and either paid out or transferred. Clear, well-timed communication protects morale, and privacy obligations apply when sharing any personal information with a buyer.
11. Settle and hand over
Settlement is the point of no return: contracts complete, funds transfer, and responsibility passes to the new owner. A planned handover — introductions, training, a clear transition period — protects the buyer, your staff, and your legacy.
12. Plan for life after the sale
The question owners most under-prepare for is the simplest: what will you do on Monday? Putting a wealth plan and a personal plan in place — ideally before settlement — turns a successful sale into a successful next chapter.
Common questions
Most businesses take around 6 to 12 months from listing to settlement, though preparation can begin years earlier. Clean books and organised documents are the single biggest factor in a faster sale.
No — but most owners use one to reach buyers, manage negotiations and protect confidentiality. Whether it's worth it depends on your size, industry and how much you want to handle yourself.
Budget for broker commission (commonly 8–12%, though some charge less), plus legal, accounting and marketing fees. Tax is the other major consideration — which the CGT concessions can help with.
This guide is general information only and does not take account of your personal circumstances. It is not financial, tax or legal advice. Speak to a qualified adviser before acting.