What is the first step in the typical process for selling a company?

The first step in the typical process for selling a company is preparation. This phase involves gathering all necessary financial documents, understanding the company's market position, and assessing various aspects of the business that would influence its attractiveness to potential buyers.

During the preparation stage, a thorough evaluation of the company's operations, financial health, and competitive advantages is conducted. This groundwork is essential to ensure that when the company is presented to potential buyers, it is portrayed in the best possible light and any questions or concerns can be addressed effectively.

Proper preparation also includes creating a comprehensive information package that will be presented to prospective buyers, which can include financial statements, projections, and operational details. This step lays the foundation for valuation and marketing efforts that will come later in the process, ensuring that the company is positioned suitably in the marketplace and maximizing its perceived value.