8 Simple Steps to Sell Your Business Monica Reynolds

Selling a business is one of the biggest moves an owner can make, and it’s not something you do every day. Real estate coach Monica Reynolds has helped many entrepreneurs think through this process in her KW MAPS training, “8 Simple Steps to Sell Your Business.” While her full framework isn’t published, the lessons she shares line up closely with what experts recommend across industries.

This article brings those ideas together in a clear, step-by-step guide. It draws on proven best practices from trusted sources like the Small Business Administration, Nolo, and Forbes so you have a roadmap you can rely on.

Whether you’re leading a real estate team, running a service-based firm, or preparing to exit a small business of any kind, these eight steps will give you a solid starting point.

Step 1: Define your exit goals and timeline

The first step in selling your business is getting clear on what you want the outcome to look like. Without that clarity, it’s easy to waste time with the wrong buyers or end up with a deal structure that doesn’t really fit your needs. Your goals will shape everything that follows how you market the business, who you target, and what terms you’re willing to accept.

Start by asking yourself a few key questions:

Why am I selling now?
When do I want to step away—six months, a year, two years?
Do I want to stay involved during a transition, or walk away at closing?
How much do I need from the sale to meet my financial goals?

Answering these questions creates a foundation for the entire process. Many owners find it helpful to put it all in writing. A simple one-page exit plan that covers your “why now,” ideal timing, target proceeds, and preferred role after closing will keep you focused and aligned with your advisors as you move forward.

Step 2: Build your deal team

Selling a business isn’t something to tackle alone. The right advisors will save you time, protect you from costly mistakes, and often help you get a better price. At a minimum, most sellers work with three key professionals:

Business broker or M&A advisor – markets your business, screens buyers, and manages the process so you don’t get pulled away from running operations.
Transaction attorney – drafts and negotiates contracts, makes sure the terms protect you, and helps avoid legal pitfalls.
CPA or tax planner – structures the deal to minimize taxes and ensures your financials are ready for buyer scrutiny.

Each plays a different role, but together they create a safety net and a strategy. A seasoned team can run a competitive process, set realistic expectations, and keep the sale on track even when negotiations get tough.

The practical output from this step is simple: signed agreements with your advisors and a roadmap that lays out the stages ahead valuation, marketing, offers, due diligence, and closing. With this in place, you’ll know exactly who’s responsible for what and what comes next.

Step 3: Establish valuation and tax strategy

One of the most important parts of selling your business is knowing what it’s worth and how different deal structures will affect what you keep after taxes. Buyers and sellers often see value differently, so it helps to go in with a well-supported number and a clear tax plan.

Valuation usually comes down to a few factors: normalized earnings (EBITDA or seller’s discretionary earnings), comparable sales in your industry, and growth potential. An advisor can help anchor the range and show you how buyers are likely to look at the numbers.

At the same time, work with your CPA to model how taxes play out under different structures. Buyers tend to prefer asset sales for liability and depreciation reasons, while sellers often prefer stock sales for tax efficiency. Understanding the trade-offs early prevents surprises when offers come in.

The goal here is to create a valuation range, set a walk-away number, and outline a simple comparison of asset versus stock sales. That one-page tax model will be a key reference point throughout negotiations.

Step 4: Prepare your financials for diligence

Clean, reliable financials make your business easier to sell and help justify the price you’re asking. Buyers want confidence that the numbers reflect reality, and sloppy books are one of the fastest ways to slow down or even kill a deal.

Start by making sure your accounting is up to date and consistent across the last three to four years. Many sellers also invest in a sell-side Quality of Earnings (QoE) report, which validates revenue, margins, and add-backs before a buyer even asks. This step can speed up diligence and strengthen your negotiating position.

Other smart moves include tightening up accounts receivable and payable, separating personal expenses from business records, renewing key contracts, and addressing any known risks. Think of it as spring cleaning for your business—do it now, before a buyer starts digging.

The output for this stage is straightforward: a clean financial package covering the last few years, a trailing twelve-month report, and a QoE analysis if your deal size justifies it. With these in hand, you’ll be well prepared for the scrutiny that comes with due diligence.

Step 5: Create buyer materials and data room

Once your financials are ready, the next step is packaging your business in a way that attracts serious buyers and makes the process smooth. Good materials show your company’s value clearly and keep you in control of the story.

Most sellers prepare three core pieces:

Teaser: a short, anonymous overview that highlights the opportunity without revealing your company name.
Confidential Information Memorandum (CIM): a detailed document that covers your company’s story, financials, customer base, team, and growth potential.
Document checklist: an organized list of contracts, records, and supporting information buyers will want to see.

Along with these, you’ll want a secure data room. This is where you store all the documents buyers need for due diligence—corporate records, financials, contracts, intellectual property, HR policies, and compliance documents. Keeping everything version-controlled and neatly organized will save time and build trust.

The output here is a complete buyer package: teaser, NDA template, CIM, and a structured data room. With these tools in place, you’ll be ready to market your business and handle buyer requests efficiently.

Step 6: Market to and qualify buyers

With your materials ready, it’s time to put your business in front of the right people. The goal is to generate interest while staying focused on buyers who can actually close a deal.

Your advisor will usually lead the outreach, but you’ll stay involved in shaping the buyer list. Most sellers target three groups:

Strategic buyers looking to expand their market or capabilities
Financial buyers such as private equity or investors interested in returns
Individual buyers who want to own and run a business themselves

As inquiries come in, screening becomes critical. You’ll want to confirm financial capacity, relevant experience, and whether they’re a cultural or strategic fit. At the same time, keep your own operations strong. Buyers pay attention to recent performance, and momentum can make your business more attractive.

The output from this stage is a detailed buyer list, an outreach log, a Q&A tracker, and a shortlist of serious prospects. By setting a clear timeline for first-round offers, you’ll keep the process moving and maintain competitive tension among buyers.

Step 7: Negotiate LOI and deal terms

Once you’ve identified a serious buyer, the next milestone is the letter of intent (LOI). This document isn’t the final contract, but it sets the framework for the deal and guides the due diligence process.

A strong LOI covers the key points: purchase price, whether it’s an asset or stock sale, how and when you’ll be paid (cash at closing, seller financing, earn-outs), and expectations around working capital. It should also spell out terms like exclusivity, non-compete agreements, and the timeline for closing.

Your attorney will play a central role here. They’ll negotiate the finer details representations, warranties, indemnities, and escrow provisions that protect you from post-sale liabilities. This is where having a clear valuation range and tax strategy from earlier steps pays off, since you’ll know what you’re willing to accept and where you can compromise.

The output of this step is a signed LOI that lays out the rules of the road. With it, both sides know what to expect as they head into diligence and final contract negotiations.

Step 8: Close and transition smoothly

The finish line is in sight, but closing a sale takes focus. During due diligence, buyers will dig into your records in detail. Respond quickly to requests, keep your financials current, and work closely with your advisors to resolve questions as they come up. A smooth diligence process builds confidence and keeps the deal on track.

When it’s time to close, all the formal agreements get signed, consents are collected, and payments are transferred. This is also when final details like inventory counts or outstanding receivables are settled.

But closing isn’t just about paperwork. A thoughtful transition plan makes all the difference. Communicate clearly with customers and employees, hand over standard operating procedures, and make sure key staff are supported so the business doesn’t lose momentum. If you’re staying on for a transition period, outline your role and responsibilities so everyone knows what to expect.

The output of this step is a completed purchase agreement, a closing memo, and a clear transition plan that carries the business forward under new ownership.

Pro Tips for a Stronger Sale

Run a pre-diligence check on yourself. Look at your business the way a buyer would and clean up issues before they show up in due diligence. A sell-side Quality of Earnings report often pays for itself by speeding up the process and supporting your valuation.
Keep your performance steady. Buyers will be watching your monthly results during the sale process. A dip in revenue or profit can give them leverage to push the price down.
Think carefully about deal structure. Asset sales and stock sales come with different tax and liability consequences. Work through both scenarios with your CPA before negotiations start, so you know which terms work best for you.

Quick Checklist

Here’s a simple list you can keep handy as you move through the process:

Exit goals and timing defined
Broker, attorney, and CPA engaged
Valuation range set with a tax model
Clean financials and QoE (if needed)
Teaser, NDA, CIM, and data room ready
Buyer list, outreach log, and Q&A tracker in place
LOI negotiated and signed
Closing documents finalized and transition plan in motion

Closing note

Selling a business is a major milestone, and the process can feel overwhelming if you’re trying to figure it out as you go. Monica Reynolds’ training inspired this eight-step framework, and the best practices shared here come from widely trusted sources like the SBA, Nolo, and Forbes.

The key is to start early, surround yourself with the right advisors, and stay focused on both the big picture and the details. With clear goals, clean records, and a thoughtful transition plan, you can move through the process with confidence and set yourself up for the best possible outcome.

Whether you’re leading a real estate team, running a service firm, or preparing to exit another kind of small business, these steps give you a solid foundation to plan your next chapter.

Frequently Asked Questions

How long does it usually take to sell a business?

Most small business sales take between six months and two years from planning to closing. The timeline depends on how prepared your financials are, market conditions, and how quickly you can find the right buyer.

Do I need a broker to sell my business?

Not always, but most owners benefit from having one. A broker or M&A advisor can market your business confidentially, qualify buyers, and keep the process moving while you stay focused on operations.

What is the difference between an asset sale and a stock sale?

In an asset sale, the buyer purchases specific assets (like equipment, customer contracts, and goodwill) while the seller keeps the legal entity. In a stock sale, the buyer purchases the company itself, including all assets and liabilities. Tax and liability outcomes differ, so it’s important to model both with your CPA.

How do I know what my business is worth?

Valuation typically considers normalized earnings, industry multiples, and growth potential. An advisor can help you benchmark your business against comparable sales and determine a fair range.

What can I do to make my business more attractive to buyers?

Keep your financials clean, renew important contracts, strengthen your team, and maintain steady performance. Many buyers also value a clear growth plan that shows how the business can expand under new ownership.

What happens after the sale closes?

That depends on your agreement. Some sellers exit immediately, while others stay for a transition period to train staff, introduce customers, or support operations. Defining your role early makes for a smoother handoff.