Selling a percentage of your business means transferring a portion of the ownership to outside investors or partners while still retaining a degree of control. Typically, this is achieved through an equity or stock sale, where you might sell anywhere from 10% to 90% of your business. If you choose to sell a minority stake—less than 50%—you can access additional capital while still maintaining decision-making power. On the other hand, selling over a 50% stake may lead to a change in control of the business, so it’s important to decide which option aligns best with your long-term goals.

The process of selling a percentage of your business involves several key steps. Initially, you should conduct a thorough business valuation by reviewing your financial statements, analyzing market conditions, and considering future growth prospects. Simultaneously, ensure you review your governing documents—such as your operating agreement or bylaws—and comply with any legal requirements at both the federal and state levels. During this phase, preparing detailed financial documentation and determining the specific percentage you wish to sell are crucial for setting a clear foundation for negotiations.

Once you are well-prepared, the next phase involves identifying potential buyers, structuring the deal, and negotiating clear terms. Deal structures may include options like preferred stock arrangements or structured investments, and you should incorporate protective mechanisms such as anti-dilution clauses and clearly defined exit rights to secure your interests. Given the complexity of this process, working with professional advisors—including legal counsel, financial experts, and business valuators—is highly advisable. This is where partnering with a comprehensive business brokerage platform like Iconic can make a significant difference.

At Iconic, our dedicated team guides you through every stage of the selling process using our proprietary Iconic Rail™ tracking system. This ensures transparency, efficiency, and tailored advice from initial discovery to final closing. By following a structured 5-step selling process—from Discovery, Onboarding, Go-to-Market, Negotiation, to Fund & Close—we help you navigate the intricacies of selling a partial stake in your business while keeping you informed and in control. For more details on our approach, visit The Iconic Way.

Stats

• According to Turner Investments, approximately 72% of business owners engage professional advisors when selling a partial stake to ensure proper valuation and legal compliance.

• Insights from Epic Network reveal that nearly 80% of minority stake transactions include anti-dilution clauses to help protect original ownership percentages.