Steps in the Sale of a Business

The process of selling a business is methodical. It begins with listing the business and identifying all tangible and intangible assets (separating personal assets from business assets). The broker then establishes a value for the business using the methods described above. After deducting the value of all liabilities (short-term and long-term debts), the broker calculates the value of the owner's equity. If the business is a corporation, the value of the stock must be determined. Throughout the process, the broker must ensure compliance with laws like the Uniform Commercial Code regarding the transfer of inventory (Bulk Transfer Act) to protect creditors. Finally, the transaction closes, transferring the business ownership, the lease or real estate, and the tangible assets to the new buyer.