If it is a small business that you are trying to sell or buy, your first port of call will probably be your local newspaper and also local commercial companies that specialise in businesses for sale.

You might need expert advice on how to value the business you are trying sell or buy. To find out the true value of the business, the valuation expert will look at the books to see how profitable the business has been in the past, examine its current customer bank, look at the state of the premises and determine from this the future profitability and safety of the business. He will then place a value on the goodwill element.

Usually, when a small business is sold, the seller will get a fair price for the stock and property. The buyer will also pay some goodwill as well to account for the future profitability of the business that has already been built in.

Often, when selling a business, negotiations can last for months as buyers and sellers come together, check out the business, try and raise finance and secure a deal that works well for both parties.

When buying a business, stay cool and negotiate really hard. Most small business owners that have put their business up for sale will negotiate on the price if you can guarantee them a quick sale.

The complexities of buying or selling a small business are almost the same as for buying a large company although not as detailed. It took over a year to sell my first business, a grocer shop, even though it was sold to the first person that expressed an interest!

When we sold our packaging company to our sales manager and production manager in a management buyout, the legal wrangling and minor disputes almost wrecked the sale which was finally achieved after almost 18 months of arguing backwards and forwards. The legal fees associated with the sale and purchase were huge to say the least, especially for the other party that were not as experienced as us in dealing with accountants and lawyers.

When it comes to expert advice, it is always a good idea to agree a fixed price rather than an hourly rate as the process might take a lot longer than you initially envisaged and therefore if you pay an hourly rate the bill could end up being astronomical!

The best advice is to keep calm and collected and not to lose your temper when talking to a seller or buyer. The sellers aim is to achieve the highest price for their business, whilst the buyers aim is to buy the business for the lowest price possible. It is easy to see then why the process is fraught with difficulties. The person that keeps a cool head will hopefully, eventually achieve what they are seeking.