Thinking about selling your business?

List your business for sale in Pirkanmaa

Selling your business is an alternative to shutting it down. A business ownership transfer is a significant decision that requires careful preparation. Starting early and taking the right steps can ensure a successful business sale.

Start Early for a Successful Sale

A common challenge for selling businesses is the lack of foresight. Sellers often start the process too late, not realizing that an ownership transfer can take 3–5 years to complete.

Most businesses are put up for sale by older owners approaching retirement. In some cases, it involves a generational transfer. The businesses being sold are typically micro-enterprises.

The Ownership Transfer Process from the Seller’s Perspective

The ownership transfer process can be clearly divided into different phases: before, during, and after the transfer. Proper preparation well in advance is crucial, as foresight is the most important factor for a successful ownership transfer.

Before the Ownership Transfer

In this phase, the idea of selling the business emerges, and preparations for selling begin, including getting the business sale-ready.

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  • Gather information. There are excellent guides available online on selling and preparing your business for sale. Build and maintain good relationships with industry stakeholders, potential buyers, and experts.
  • Step into the buyer’s shoes. Think like a potential buyer and consider what aspects of your business would be most valuable to them.
  • Make the decision to sell and prepare yourself.

  • Keep the business in good condition. Ensure the business’s finances, contracts, and processes are up-to-date and well-documented. This makes the sale or purchase smoother down the line.
  • Plan for life after the sale. Secure your livelihood and consider your purpose once the business is sold.

During the Ownership Transfer

During the ownership transfer, the seller and buyer meet, the business’s value is determined, and sales negotiations are conducted.

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  • Review the condition of the business: Ensure that the business’s finances, contracts, and processes are up-to-date and well-documented. At this stage, everything must be in order for the sale.
  • Valuation of the business: Use experts to determine the value of the business and establish an appropriate price range.
  • Finding a buyer: Announce your intention to sell. Buyers are often found within your network. Provide the potential buyer with sufficient information to make a purchasing decision and consider using a letter of intent to ensure confidentiality.

  •  Sales negotiations: At this stage, we strongly recommend involving an external expert to ensure all aspects are properly addressed.

After the Ownership Transfer

After the ownership transfer, it’s time to adapt to a new role. The former owner can still act as a mentor for the new owner.

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  • Transition phase: The former owner can help the new owner get started in the business and act as a mentor for an agreed period.
  • Acting as an advisor: The former owner can offer their expertise and experience as a consultant or advisor to other businesses.

  • Mentoring: Experienced entrepreneurs can mentor younger business owners, sharing valuable lessons and insights.

Watch Videos on Selling a Business

 Selling a Business – How Does the Process Work?

 This video is a recording of the Selling a Business – How Does the Process Work? webinar held on March 20, 2024. Duration: 1 h 28 min (in Finnish).

Preparing for a Business Sale and Taxation

 This video is a recording of the Preparing for a Business Sale and Taxation webinar held on May 2, 2024. Duration: 1 h 40 min (in Finnish).