TradeExit Guide

How to sell a business

Selling a Main Street business typically takes 6-10 months from going to market to closing (IBBA Market Pulse, Q2 2026). The steps below take you from your number to the closing table; industry guides cover license and transfer rules.

Updated 2026-09-23 · 1 source · By the TradeExit Guide team

The sale process in eight steps

  1. Value it

    Calculator and SDE recast.

  2. Fix discounts

    Owner dependence, concentration, messy books.

  3. Check transferability

    Licenses, leases, payer/carrier contracts - see your industry guide below.

  4. Prepare documents

    Three years of financials plus industry-specific reports.

  5. Choose a route

    Business brokers by state, broker reviews, or broker vs DIY.

  6. Negotiate the LOI

    Letter of intent (free template), seller note, earn-out calculator.

  7. Diligence and contract

    Quality of earnings, purchase agreement, escrow.

  8. Close and plan taxes

    After-tax proceeds, asset vs stock, ESOP vs sale.

Sale guides by industry

Dental practiceMedical practiceVeterinary practiceRestaurantInsurance agencyAccounting / CPA firmHome services (HVAC, plumbing, pest, roofing, electrical)

Deal-term guides

Asset sale vs stock saleTax, allocation, licenses and liabilities.Business broker vs selling it yourselfNeutral comparison, fee math and licensing.Business appraisal vs valuation estimateWhen you need a credentialed appraisal.Selling your dental practice: DSO vs private buyerPrice basis, cash, rollover and your role compared.Earn-outs: how they work and what to watchDollar examples, SBA limits and tax.Escrow, holdbacks, and reps and warrantiesEscrow math and indemnity terms.ESOP vs selling to a third partyESOP vs strategic sale, with Section 1042.Exit planning: a 3-5 year playbookTimeline, routes and value drivers.Letter of intent (LOI) to purchase a businessBinding vs non-binding and key clauses.Buy-sell agreements and purchase agreements, explainedBuy-sell vs purchase agreement.Quality of earnings: what it is and how it affects your priceWhat it tests and how it moves price.Rollover equity: how the "second bite" worksSecond-bite math and terms to negotiate.

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Frequently asked questions

How long does it take to sell a small business?

The IBBA/Pepperdine Market Pulse reports 6-10 months to close for Main Street deals and 11-12 months in the lower middle market (Q2 2026).

Should I use a business broker?

If you do not already have a buyer, a good broker can create competition. Check licensing in your state and get fees in writing; see business brokers by state.

Sources

  1. IBBA / M&A Source / Pepperdine Market Pulse, Q2 2026 highlights (accessed 2026-09-23)
Selling a home services companyHow to sell an HVAC, plumbing, pest control, roofing, electrical or landscaping company: license transfer...Selling a dental practiceHow to sell a dental practice: timeline, buyer types, deal structure, license transfer rules and the...Selling a restaurantHow to sell a restaurant: timeline, buyer types, deal structure, license transfer rules and the documents...Selling a veterinary practiceHow to sell a veterinary practice: timeline, buyer types, deal structure, license transfer rules and the...Selling a accounting firmHow to sell a accounting firm: timeline, buyer types, deal structure, license transfer rules and the...Selling a insurance agencyHow to sell a insurance agency: timeline, buyer types, deal structure, license transfer rules and the...