Free Resources

M&A Resources for Business Owners

Practical guides for owners preparing to sell: the M&A process step by step, a checklist for selling a business, and free PDF downloads.

See the ProcessSee the Checklist

The M&A Process, Step by Step

Selling a business through a formal process usually runs about ten months, in five phases. The phases overlap, and timing shifts with the business and the market.

  1. Preparation

    Months 1-2

    • Engage an M&A advisor and legal counsel
    • Compile financial documentation
    • Create the confidential information memorandum (CIM)
    • Identify the target buyer universe
    • Develop the data room and organize materials

  2. Marketing

    Months 2-4

    • Contact potential buyers under NDA
    • Distribute the teaser and CIM to qualified parties
    • Schedule management presentations
    • Receive initial indications of interest (IOIs)
    • Evaluate and select buyers for the next round

  3. Negotiation

    Months 4-6

    • Facilitate the due diligence process
    • Receive and compare letters of intent (LOIs)
    • Negotiate key deal terms and structure
    • Select the preferred buyer
    • Execute the exclusivity agreement

  4. Due Diligence

    Months 6-8

    • Comprehensive buyer due diligence
    • Quality of earnings analysis
    • Legal and environmental review
    • Customer and vendor verification
    • Management team discussions

  5. Closing

    Months 8-10

    • Final purchase agreement negotiation
    • Regulatory approvals and third-party consents
    • Financing confirmed by the buyer
    • Transaction closing and fund transfer
    • Post-closing transition support

Timeline varies based on deal complexity, industry, and market conditions.

How long it takes to sell a businessDownload the timeline (PDF)

Checklist for Selling a Business

What buyers will ask to see, grouped the way diligence works through it. Items you can check off before a process starts are leverage you keep.

Financial Documentation

  • 3-5 years of audited or reviewed financial statements
  • Monthly financial reports for the current year
  • Tax returns for the past 3-5 years
  • Detailed accounts receivable and payable aging reports
  • Capital expenditure schedule and depreciation records
  • Bank statements and credit line documentation
  • Quality of earnings adjustments identified

Operational Readiness

  • Documented standard operating procedures (SOPs)
  • Employee handbook and HR policies in place
  • Key employee contracts and non-competes
  • Management team that can operate without the owner
  • Customer contracts and service agreements organized
  • Vendor and supplier agreements documented
  • Licenses and permits current and transferable

Legal & Compliance

  • Corporate documents (articles, bylaws, minutes)
  • Intellectual property registrations and patents
  • Environmental compliance records
  • Pending litigation disclosed and resolved
  • Insurance policies adequate and current
  • Real estate leases reviewed for assignment clauses

Strategic Positioning

  • Clear value proposition and competitive advantages
  • No single customer dominates your revenue
  • Recurring revenue streams identified
  • Growth opportunities documented
  • Industry trends and market position understood

Download the checklist (PDF)

When to Use Each Resource

Owners rarely need all four of these at once. Which one helps depends on how far along you are, and the order below follows the sequence most sale processes actually take.

  1. Twelve months out: understand what drives your number

    Value is largely set before a process begins. Start with What Determines Your Business Value to see how buyers weigh earnings quality, growth, customer concentration and depth of management. This is the window where changes still move the outcome, because a buyer diligencing you next quarter will be looking at this year's numbers.

    How to increase your business valuation

  2. Six months out: close the gaps before a buyer finds them

    The Business Sale Readiness Checklist covers financial documentation, operational cleanup, and the legal and compliance items that surface late and cost leverage when they do. Working through it early turns problems you control into problems you have already solved.

    What buyers really look for in diligence

  3. Starting a process: know the shape of the road

    The M&A Process Timeline sets expectations across preparation, marketing, diligence and closing, so a quiet stretch reads as a normal phase rather than a stalled deal.

    How long it takes to sell a business

  4. Under LOI: get ahead of the document request

    Documents Needed to Sell Your Business lists what buyers ask for once a letter of intent is signed. Assembling it before the request arrives shortens the exclusivity period, and a shorter diligence window gives a buyer less room to renegotiate.

    How to evaluate an LOI

Downloads

Every resource as a free PDF.

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