What does Selling Your Business Really Look Like? A Step-by-Step Overview.
What Does Selling Your Business Really Look Like? A Step-by-Step Overview
For many business owners, the decision to sell is one of the biggest and most emotional choices they’ll ever face. Maybe you started your company when you were 18 with nothing but a good idea and grit. Or maybe it’s been in the family for generations, a business that has shaped both your livelihood and identity. Either way, this company isn’t just something you own. It’s something you’ve built.
You’ve weathered storms, pushed through tough months, and put your name on the line more times than you count. So when the time comes to think about selling, it is natural to feel a mix of hesitation, fear, and hope.
But what if selling your business could be the next great chapter, not the end of the story? What if it could be the move that secures financial freedom for your family, unlocks generational wealth, and brings in a partner who respects your legacy and is ready to grow what you’ve built?
The truth is, selling your company doesn’t have to be chaotic or confusing. Yes, it’s complex, but it can also be clear and empowering with the right team supporting you. Whether you’re just starting to explore the idea or are ready to move forward, knowing what the process really looks like can help you make decisions with confidence.
This article breaks down what it really looks like to sell your business, and how to think through one of the most important decisions of your life. You don’t have to do it alone. Let’s walk through it, step by step.
When Is the Right Time to Sell?
There is no perfect time to sell a business, and it all depends on why you want to sell. It’s common for business owners to want to sell when they’re ready to retire, want to spend more time with family, or simply pursue something else. From a business perspective, having steady revenue, loyal customers, and long-term contracts can make your company more attractive to buyers. At the end of the day, trust your instincts: if you can’t see yourself running your business five years from now, it might be a good time to sell.
Should I Hire a Broker or Sell Directly?
Deciding whether to hire a broker or handle the sale yourself is one of the first big questions you’ll face, and the right answer depends on your goals, timeline, and comfort level with the process.
A broker can guide you through the sale process, help with valuation, and introduce you to qualified buyers. For some sellers, especially those seeking the highest possible price or unsure of where to start, this guidance can be invaluable. That said, not all brokers are created equal. The quality of services, the degrees of personalization, and the level of strategic support can vary significantly. Some brokers operate at high volume, pushing deals through quickly to maximize commissions at the expense of nuance, confidentiality, or alignment with your values.
Brokered processes also tend to be long and involved, where you may spend months preparing materials and responding to inquiries from buyers who aren’t always serious. The widespread marketing of your business, while sometimes useful, can reduce confidentiality and lead to fatigue.
By contrast, a direct sale can be more streamlined and personal. Many owners choose this path when they’ve been approached by a buyer they trust, such as a search fund entrepreneur or individual investor who brings a genuine intent with a collaborative mindset. In these one-on-one scenarios, the process is often faster, more confidential, and free from broker fees.
So, should you hire a broker? It depends. If you’re seeking a broad auction process, are comfortable with a longer timeline, and want to maximize the number of potential buyers, a broker may be the right fit. But if you value discretion, want to avoid hefty fees, and already have interest from a serious buyer, a direct approach might be the smarter, simpler path.
Choosing the Right Buyer: Why Fit Matters More Than Price
While getting the highest offer is certainly rewarding and well-deserved after many years of running your business, selling your business shouldn't always be about trying to find the highest bidder. Who will lead the company? Will the culture be preserved? Will your team still have a future? These are all considerations to be taken into account when choosing the right buyer.
There are three main types of buyers to consider: private equity, strategics, and search funds like HSC. Private equity firms aim to scale and sell your business within a few years. They bring capital and expertise but often prioritize returns over legacy. Strategic buyers are typically competitors or partners looking to absorb your company into theirs. This can lead to major changes in brand, team, and operations. Search funds are led by individual entrepreneurs who acquire and operate one business. They’re hands-on, long-term, and deeply committed to preserving what you’ve built. At HSC, we’re ready to move to your city, work alongside you, and carry your legacy forward.
If you want the highest valuation and don’t mind big changes, PE or strategic buyers may be the best. But if you want a trusted, human partner who will protect your team and grow what you’ve built, a search fund is likely the better fit.
Whether you’re working with a broker or selling directly, your financials are the foundation of any deal. Buyers want to understand how your business makes money, where it spends, and how it’s trending. So, being ready with clean, organized financial records is essential.
Expect to be asked early on for your profit and loss statements (P&Ls), balance sheets, and cash flow statements, typically for the current year and prior 1-2 years. These numbers help buyers assess stability, margins, and growth before they even begin deeper diligence.
Beyond the financials, it helps to have: a clear view of customer and vendor contracts; documentation of key processes or systems; a strong, stable team; and day-to-day operations running smoothly.
The more prepared and transparent you are, especially with your numbers, the faster and smoother the process will be and the more likely you are to attract serious, credible buyers.
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What Happens After You Decide to Explore a Sale?
Once you’ve taken the first steps by organizing your finances, clarifying your goals, and deciding whether to sell directly or hire a broker, the next stage is usually an initial conversation with a potential buyer. This is where the deal timeline really begins.
Most buyers, whether private equity or search funds, reach out through a variety of channels. We know these inquiries can feel nonstop, and it’s hard to tell who’s serious, who’s qualified, and who’s just fishing. That’s why we do our best to show up consistently, respectfully, and transparently, to give you enough context to do your own research and decide if it’s worth a conversation.
If you choose to engage, the process from there typically looks like this:
1. Initial Conversation
The first conversation with a buyer is typically informal, with no pressure or contracts. It’s simply a chance to connect and speak to each other.
As a seller, it's your opportunity to share your story: how the business started, what makes it special, and what matters most to you going forward. For us as buyers, it's equally important. We want to learn about you and your company, but also share who we are, why we do this, and what kind of partner we strive to be.
It’s a two-way conversation. The goal isn’t to “close the deal” but to see if there’s real alignment, both personally and professionally. Many sellers find these early 1-on-1 conversations with search fund buyers to be a refreshing shift from more traditional, transactional deal-making environments.
Interested in chatting? Book a 15-minute call with HSC.
If the initial conversions go well and there’s strong mutual interest, the next step is usually for the buyer to request some high-level financial information to better understand your business’s performance. This might include recent P&Ls, revenue trends, customer concentration, or other key metrics.
This stage is still early, but incredibly important. Buyers want to understand the fundamentals before moving forward, and sellers deserve to feel protected while sharing this information. That’s why a good buyer will always offer a Non-Disclosure Agreement (NDA) at this point. If one isn’t offered, you should feel comfortable asking for one, regardless of who you’re speaking with.
Once both sides are aligned and ready to move forward, the next formal step is the Letter of Intent (LOI). While not legally binding, it acts as a critical milestone by outlining the key terms of the proposed deal. This includes: purchase price and payment structure; timeline for diligence and closing; how long the buyer will have exclusivity rights to negotiate (exclusivity period); confidentiality terms and other guardrails.
Think of this as a blueprint, setting expectations and helping to reduce surprises later while also showing that the buyer is serious. A clear, well-written LOI establishes trust and sets the space for a smoother and more collaborative process moving forward.
After the LOI is signed, the buyer moves into due diligence. This is a deep dive into the business, usually taking 30 to 90 days. The buyer will closely review financial statements, tax records, legal agreements, employee information, and the overall operations of the business. They might also talk to key staff or outside advisors to confirm details. The goal is to make sure everything lines up with what was shared earlier. For search fund buyers like us at HSC — who plan to take over and run the business ourselves — this step is also a time to really learn how the business works day to day. We approach due diligence with care and respect. Sellers who stay organized, honest, and ready to share information often find this phase goes more smoothly.
4. Transition and Post-Sale Considerations
Once the deal is finalized, the transition period begins. Every seller is different — some want to move on right away, while others prefer to stay involved for a while, helping with advice or training the new owner. What matters most is that everyone agrees on the plan up front.
Search fund buyers are flexible and usually happy to shape the transition around what’s best for the seller, the employees, and the future of the company. Unlike larger buyers who may have more rigid processes, we’re able to adapt to your goals, whether that means a quick exit or a longer-term partnership.
Selling your business is one of the most personal and significant decisions you’ll ever make. It’s not only about the numbers, but also about the people, values, and the legacy that you’ve built over years, or even decades.
From preparing your financials to choosing who will carry things forward, every step matters. The right buyer will honor what you’ve built and help shape what comes next.
Search funds like HSC provide a different path, building on continuity, care, and long-term commitment. We work with founders who want to see their business thrive, their people supported, and their legacy protected.
By staying prepared and open in your approach, you can set the stage for a transition that can be a meaningful close to one chapter and the beginning of another for you, your company, and everyone who’s been a part of the journey.
Key Takeaways
Selling your business is both personal and strategic; it’s not just about price but also legacy, timing, and finding a buyer who truly understands what you’ve built.
The process can be smooth and structured, from preparation to LOI, due diligence, and transition, each step is manageable with the right guidance.
Fit matters: whether you sell directly or work with a broker, choosing a buyer who aligns with your values ensures your company and your people are in good hands.
If you’d like to connect with a member of the HSC team, we’d love to talk. Please email Alejandro at alejandro@harborstreetcapital.com
At HSC, we want to Help, Support, and Carry your company’s legacy forward.
