How to sell your business without a broker or realtor

A simple, honest guide for business owners across Canada. Ten plain steps, from deciding when to sell through to handing over the keys.

1. Decide your goals and timing

   Think about when you want to retire, the price you hope for, and whether you're willing to stay on for a while to help the new owner. Most private sales take 6 to 12 months, so give yourself time.

2. Get your numbers in order

   Gather your last 3 years of financial statements and tax returns, plus a list of equipment, leases and key contracts. Buyers will ask for these first. Your accountant can help tidy them up.

3. Get a rough value

   Use our free value estimate to see a rough price range in a few minutes. For a firm figure, ask a qualified valuator or your accountant.

4. List free and privately

   List your business free. You can leave out your business name and exact town, and your contact details stay hidden until you choose to share them.

5. Talk to buyers, and use an NDA first

   When a buyer gets in touch, have them sign an NDA (a confidentiality agreement) before you share your name, your books or other private details. Your lawyer can provide one.

6. Check that buyers are serious

   Ask for proof of funds (a bank letter or statement) or a letter showing their financing is approved. That way you don't waste time with people who can't buy.

7. Agree on the price and terms in a letter of intent

   A letter of intent (LOI) writes down the main points you've agreed on: the price, what's included, the closing date and any training period. It's usually a short document, and your lawyer should look it over. What is a letter of intent?

8. Due diligence

   The buyer checks your books, leases, contracts and equipment to make sure everything is as you described. It usually takes a few weeks. Be open and organized, because surprises can cost you the deal.

9. Your lawyer drafts the purchase agreement

   Your lawyer prepares or reviews the final purchase agreement. If real estate is part of the sale, both sides' lawyers handle the property transfer, and no realtor is needed.

10. Closing and handover

    On closing day, the lawyers exchange the money and documents. You then hand over keys, passwords and customer contacts, and you train the new owner for the period you agreed on.