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Prepare a fictional owner for a sale, from readiness and valuation evidence through buyer diligence, deal structure, closing, and transition. Tax treatment and legal terms require qualified advice.
Four guided lessons, hands-on decision sequences, practice checks, and final decisions. Build a plan, test it, then examine the reasoning. Progress stays on this device only.
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After this lesson: Spot owner dependence and missing records before going to market.
A buyer needs evidence that customers, suppliers, staff, licenses, systems, and finances can continue after the owner leaves. Starting preparations early gives time to fix records and document repeatable processes.
A distributor has strong sales but every retailer relationship sits in the owner's phone. The seller documents account history, assignability, route procedures, and named handoffs before sharing confidential materials with buyers.
Use the briefing above. Select the actions in the order you would take them, then run the sequence.
Apply it: Choose the gap that could reduce buyer confidence.
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After this lesson: Separate an asking price from evidence of transferable earnings.
Valuation can use earnings, assets, and market comparisons, each with assumptions. Buyers test adjustments, recurring revenue, customer concentration, and capital needs. One multiple does not determine a fair outcome by itself.
The seller asks $1m based on adjusted earnings of $250k. Buyers find $40k of proposed add-backs without records; the seller reconciles them instead of defending the same multiple with unsupported figures.
Use the briefing above. Select the actions in the order you would take them, then run the sequence.
Apply it: Identify the number that needs evidence before buyer outreach.
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After this lesson: Evaluate cash at closing, contingencies, seller financing, and risk.
A $1m all-cash offer and a $1.1m offer with future earn-out are not equivalent. Define what must happen to receive deferred funds and who controls the metric. Consider taxes, debt payoffs, fees, working capital, and indemnity with advisers.
Offer A pays $900k at closing. Offer B pays $800k plus up to $200k if next year's sales target is achieved. The owner compares likely after-cost proceeds and the terms of the contingent payment, not just the maximum headline.
Use the briefing above. Select the actions in the order you would take them, then run the sequence.
Apply it: Choose which offer question reveals payment uncertainty.
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After this lesson: Coordinate documents, tax allocation, approvals and post-close duties.
Closing documents must reflect the agreed assets or interests, liabilities, consents, employee arrangements, records, and payment. The IRS treats sales of business assets according to their classification; tax planning and allocation need professional review. Handoff duties should be specific.
Before closing, the seller reconciles inventory, confirms consent for a key lease, reviews the allocation and tax questions with a CPA, and schedules customer introductions under negotiated terms.
Use the briefing above. Select the actions in the order you would take them, then run the sequence.
Apply it: Identify a task that cannot safely be left as a vague promise.
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Three new scenarios check what you retained. A missed answer opens a worked explanation and a reworded question.
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Original Aim High Hero explanations and fictional exercises. The external source provides subject reference and does not endorse this course.
U.S. Small Business Administration — Manage your business and plan an exit ↗Internal Revenue Service — Sale of a business ↗SCORE — Sell your business ↗SEC — Exit strategies and liquidity ↗