Closing A Deal: What Happens After You Accept an Offer

As a business broker in the Phoenix AZ with over 25 years of experience, one of the most common questions I hear from sellers is: “What happens after I accept an offer on my business?” Accepting an offer is an important milestone, but it’s not the finish line. In reality, it’s the beginning of the final, and often most critical, stage of the transaction process.

Here’s what typically happens after you and the buyer agree on an offer:

1. The Offer Should Evolve Into a Purchase Agreement

Once you’ve accepted an offer, the next step is to formalize the deal with a legal and binding purchase agreement which is generally submitted by the Buyer. This document outlines the agreed price, terms, and conditions of the sale. It’s important to review it carefully with your broker and attorney to make sure your interests are protected.

2. The Due Diligence Process & Period Begins

Buyers want to verify the financial, legal, and operational details of your business before signing off at a closing. This stage is called due diligence period. Expect to provide documentation such as:

Financial statements and tax returns

Lease agreements

Employee information

Customer contracts or vendor agreements – depending on the stage of the process

Transparency is key here. If negative issues are uncovered, it could delay or even derail the deal. A good broker helps organize and present the information in a way that reassures the buyer.

3. Buyer Financing and Approvals

Many buyers rely on SBA loans or other bank related financing to fund the purchase of an established business. Lenders will require detailed documentation and will conduct their own due diligence including ordering a business valuation by a third party appraiser- As I have said many times, lenders often do more extensive due diligence than the buyer.

This process can easily take 30 to 60 days (or longer!) so patience and timely responses are critical. Your broker should help manage communication between the lender, buyer, and seller to keep things moving forward.

4. Contingency Removal

Most offers include contingencies—conditions that must be satisfied before closing the sale. Common examples include:

Buyer financing approval

Lease transfer approval from the landlord

Franchise approval (if applicable)

Passing due diligence conditions

As each contingency is resolved, the transaction gets closer to the finish line.

5. Preparing for Closing

As the deal nears completion, both parties work with a third party escrow company and possibly attorneys to finalize the closing documents. This includes:

Finalizing the bill of sale

Drafting transition agreements

Determining how inventory and working capital will be handled

A third party escrow service ensures that funds are transferred securely and that all legal paperwork is properly recorded.

6. Transition and Handover

Once the deal officially closes, your role as the seller doesn’t end immediately. Most transactions include a transition period, where you’ll help train the new owner, introduce them to employees and customers, and provide ongoing support for a negotiated amount of time. This helps ensure a smooth handoff and protects the buyer’s investment.

Final Thoughts

Accepting an offer is exciting, but closing the deal requires patience, preparation, and professional guidance. Having an experienced business broker by your side can make the difference between a stressful process and a successful transition.

If you’re considering selling your small business in Phoenix or anywhere in Arizona, I’d be happy to guide you through every stage—from marketing and negotiating to due diligence and closing. Feel free to contact me now with any questions.