Selling part of your business can be a strategic move for raising capital, refining your focus, or bringing on new partners while retaining control over your core operations. There are several methods you might consider, such as a partial share sale, asset sale, or selling a specific business unit or product line. Your choice will largely depend on your business goals, the nature of your operations, and the market demand for that particular segment.

The process typically starts with clearly isolating the segment of your business to be sold. This initial step is critical because it defines exactly what assets or departments are on the table. Next, you need to decide on the structure of the sale—whether it involves shares, physical assets, or a full business unit—and determine its value. Employing common valuation methods, such as income-based approaches (e.g., discounted cash flow), market comparisons, or asset-based calculations, ensures that you are setting a competitive price. Preparing the necessary documentation—like a Confidential Information Memorandum (CIM) and sales agreements—is also essential to establish credibility and transparency with potential buyers.

In addition to these operational steps, addressing legal and tax considerations is crucial. Accurate valuations and proper documentation help ensure compliance with contractual and regulatory requirements, while understanding the tax implications of different sale structures (asset versus stock sale) can affect your financial outcomes. Moreover, maintaining smooth business operations throughout the process is vital because prospective buyers look for stability and profitability. Engaging professional advisors—such as tax experts, legal counsel, and business brokers—can further streamline the process.

At Iconic, we simplify this complex journey with our comprehensive five-step process—from Discovery to Fund & Close—and our innovative Iconic Rail™ tracking system that keeps you informed at every step. Our dedicated team of experts is here to guide you through every aspect of the sale, from determining the best segment to put on the market to connecting with our vetted network of buyers across industries. To learn more about our tailored approach, visit The Iconic Way page or explore additional insights on our Blog.

Stats

• According to Falcon River, the process of selling part of your business typically involves 4 key steps: isolating the segment, choosing the sale structure, determining its value, and preparing the necessary documentation.

• Research from Raincatcher reveals that there are 4 essential documentation components needed for a successful sale—comprehensive business records, a Confidential Information Memorandum (CIM), data room preparation, and finalized sales agreements.

• HostingData highlights that navigating this process effectively usually requires the expertise of 4 types of professional advisors: a business valuator, a tax advisor, legal counsel, and a business broker.