Backing up the database should be easy as it's all in your hosting cpanel. You should have access to a backup area within your cpanel where you can backup your SQL database.
The new site owner will also require the site files.
This is the way I will go about it Vic (and have done on a few occassison)
i. Back up the entire site.
ii. Do a dump of the database (to your computer)
iii. zip up the site files and database dump, upload it to a location, give the new owner url of the location to download it. The new owner can write it to a disk if he or she likes.
End of story
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