The NFIB estimates that roughly 5% to 8% of small businesses are sold every year. As often as it happens, though, the process of selling a business doesn’t take place overnight. Proper planning – to enable you to maximize the value of your sale, and smooth the transition to the new owner – can take as long as a year. If you’re considering selling your business, these tips can help you prepare for what might be the most significant sale you will make.

Set goals
Selling your company is a big step, and it deserves the kind of preparation you’d give to any major milestone. Begin by outlining what you want the sale to accomplish – what the selling price should be, who your ideal buyer is, and which elements of the sale you are willing to negotiate.

Line up professional advisors
It is possible to sell your business without professional help, but it may not be advisable. Your top “partners” are your accountant, your lawyer, and your banker – their input regarding the legal and financial implications of selling your business is critical. When it comes to putting your company on the block, a reputable business broker can help in pre-qualifying buyers and handling negotiations. Finally, many companies work with a professional appraiser to determine the value of their business. Ask your trusted advisors for referrals.

Prepare your business records
Potential buyers will want to see your business records, so you will need to work with your accountant to make sure they are clear and accurate. Be prepared to show at least three years’ worth of P&L and cash flow statements so buyers can see both revenue and profit trends. If you’ve managed the books aggressively in the past to reap tax advantages, you will need to work with your accountant to prepare a year’s worth of records that reflect the company’s true profit potential.

Review contracts and leases
Buyers may be more attracted to your business if it has favorable contracts and leases in place. Close inactive customer accounts and supplier contracts, and extend active contracts so they will not expire near the date of sale. Look for leases that have high interest rates, and then try to negotiate either a lower rate or termination, as they may reduce the fair price of your business.

Document customer relationships
If you’ve been in business a long time, you may have informal relationships with many of your customers. Get these arrangements in writing. If you carry any large accounts without a contract, put one in place. Formalize payment terms so all your customers are treated equally. This stability can be attractive to potential buyers.

Get buy-in from key staff members
If you’ve been in business a long time, you may have informal relationships with many of your customers. Get these arrangements in writing. If you carry any large accounts without a contract, put one in place. Formalize payment terms so all your customers are treated equally. This stability can be attractive to potential buyers.