After accepting an offer for your business, the buyer and seller usually agree the main transaction terms, begin due diligence and instruct professional advisors to prepare the legal documentation. Accepting an offer does not necessarily mean the sale is legally binding or complete. The transaction must progress through the agreed checks and contractual stages before ownership transfers.
The process generally involves three stages:
- Agree Heads of Terms: Document the proposed purchase price, payment structure, conditions, expected timescale and any exclusivity arrangements.
- Complete buyer due diligence: Provide the agreed financial, legal and operational information so the buyer can verify the business and assess potential risks.
- Prepare for completion: Work with solicitors and other advisors to negotiate the Sale and Purchase Agreement, resolve outstanding matters and finalise the transaction.
For example, a buyer may agree to purchase your business for £500,000, subject to satisfactory due diligence and confirmation of acquisition finance.
During this period, maintain accurate records, respond promptly to reasonable information requests and continue operating the business effectively.
Read more: What Happens During Due Diligence When You Sell a Business?
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