Have a valid reason to sell. It's probably the first question a potential buyer will ask you. The more valid your reason is, the more serious the buyer will be. However, avoid to disclose personal information: it would give the buyer leverage on you during the negotiations.

Do not wait until you have to sell for economic or emotional reasons. Anxiety can force you to accept an offer than is not good for you.
Once you made your decision, gather the information needed to market and sell your business:
- Three year's financial statements;
- Tax returns for three years;
- List of fixtures and equipment;
- Approximate value of inventory;
- List of employees;
- Customer lists;
- Copies of the lease;
- The franchise agreement (if applicable);
- List of loans with balance and payment schedule;
- Copies of equipment leases;
- Names of outside advisors (business broker, lawyer, accountant...).
Even if you have prepared your own financial statements in the past, you should consider having an outside firm prepare or review them for the sale. This will increase the value of the business in the eyes of potential buyers and the likelihood of making a sale.


Be a part of the marketing team: Meet the broker's staff to tell them about your business and follow their advice about dealing with prospective buyers.
Maintain confidentiality in your day to day business activities. To avoid giving away information that can be used to compete against you, provide financial information only to serious potential buyers against a deposit. You can also ask a potential buyer to sign a non-disclosure agreement.

Think like a potential buyer: Suppose you are visiting your company for the first time, how impressed are you? During the course of selling a business you will get a lot of prospects who are not really interested and can waste a lot of your time. You need to be able to quickly judge the seriousness of a prospect so that the energy you put into discussing the business is not entirely fruitless.

Do not let things slip because you are selling: Keep normal hours, maintain the inventory, paint or fix the premises if needed.
Engage professionals who understand the sales process. A business broker can act as an agent for entrepreneurs looking to sell a business. They can be found through the business pages listings, advertisements in local newspapers or trade magazines or referrals. They typically charge a percentage of the final sales price, payable at closing. There are several advantages in hiring a business broker:

The broker will allow you to maintain confidentiality;
- It saves you the time of dealing with potential buyers;
- Some prospects may be more comfortable, at least initially, talking to an intermediary;
- A broker specialized in a particular industry may have excellent contacts at larger corporation that might be interested in buying out your company. Nonetheless, a broker's fee is substantial and you will have to weigh the expense before you decide to hire one.
- Lawyers can also be helpful. There are two areas where it is strongly suggested that you consult a lawyer when selling a business:
- when you prepare a document summarizing your business for potential buyers: if the business turns out to be less successful or easy to run than anticipated, the new buyer may assume that the business was fraudulently represented. A lawyer can review your document to avoid the risk of litigation;
- when you prepare a purchase and sales agreement: you should have a lawyer review, if not actually prepare the purchase and sales agreement.

Be patient and study carefully every offer then make a counter offer.
Help create a win-win situation for everybody involved.

Employees

Make sure that your employees hear about a potential sales of the business from you and not a third party. Rumors breed nervousness, some of your staff might decide to seek employment elsewhere and leave immediately. If you decide to advertise the sale of your business openly, tell your employees before the advertisements run. Explain that the sale could take a long time to happen, and unless you plan to close down if no sale occurs, may not happen at all. Remain truthful but emphasize the positive. If you decide to advertise the business confidentially make a concerted effort to avoid any leaks to employees. Consider using a business broker and have any interested buyer sign a nondisclosure agreement. Potential buyers should also visit your facilities during off hours. Finally, you may decide that one or more employees is the best potential buyer for your business. Employees know the business better than outsiders and may be able to persuade investors or lending institutions to finance the buyout.

Source The Business Link Canada Business Centre Alberta