Twelve Months Out: Fix What a Buyer Will Find
Buyers and their accountants will read three years of your books. Anything odd will cost you, either in price or in time.
- Separate personal expenses from the company's, and list the ones that remain as add backs
- Get monthly financials closed on time, ideally reviewed by an outside CPA
- Write down how the work gets done, so it doesn't live only in your head
- Renew or extend the lease if it has less than five years left
- File any missing state or city returns now, not during due diligence
The last point matters more in Washington than owners expect. See our guide to the Department of Revenue tax clearance for why.
Six Months Out: Get a Real Number
A broker's opinion of value tells you whether the sale makes sense at all. If the range is below what you need, it is far better to learn that now than after a buyer has seen your books.
Our business valuation page explains how that range is built and which adjustments move it.
Going to Market Quietly
Employees, customers and competitors should not hear about a sale from a listing. A good broker markets the company without its name, sends details only after a signed confidentiality agreement, and screens buyers for funds and experience first.
In the Seattle area that screening matters. Plenty of curious people request information; fewer can close.
Offers, the LOI and Due Diligence
Serious buyers submit a letter of intent with price, structure, timing and the terms that matter to them. Compare these on what you keep after tax and how likely they are to close, not on the headline number alone.
After you sign one, the buyer spends 45 to 90 days checking everything. Expect requests for tax returns, bank statements, contracts, payroll records and proof that state accounts are current.
Closing the Washington Way
Several things happen at or right after closing here. You file a final excise tax return with the Department of Revenue within 10 days of the sale. Retail sales tax may be due on the equipment and furniture the buyer is paying for.
Your unemployment, workers' comp and Seattle business license accounts all need attention. Large gains may owe the state capital gains tax the following April. The Washington filings section covers each one.
After the Sale
Most sales include a transition period. You may train the buyer for a few weeks or months, or stay on longer under a consulting agreement.
Read that part of the deal carefully. Your time after closing has a value, and the terms should say what you are expected to do.
Where to Begin
Most sellers start with a confidential estimate. It takes three short steps on the price check form, or a call to (206) 555-0171.