Business Advice · 12 October 2021

I want to sell my business

I want to sell my business

There are usually only three reasons you sell your business: once when you retire or multiples times as you sell businesses throughout your life to either move on to another project or because a keen competitor is buying you out.

A commonality runs through these three deals: you will want to get the best deal you can out of the sale.

A few quality books have been published on this topic, such as ‘How To Sell Your Business For the Price You Want’ by the prolific business author Mark Blayney, but few small business owners have the time to read a whole book on each business question.

The selling approach

As with most serious business decisions, selling a business needs to be approached systematically. To get the best deal possible, it would be helpful to work through these steps:

  1. Define the reason for selling your business
  2. Get a professional involved
  3. Increasing the attractiveness of your business
    1. Ascertain the worth of your business
    2. How to evaluate your business
  4. The process of selling
  5. Price negotiation
  6. Closing the deal and contract of sales
On the other side of a sale is the buyer. You could be selling to your management team (Management Buy-Out), a trade buyer, an Investor, or to your employees (Employee Ownership Trust). The selling process can be simple or complex, depending on the buyer involved.

To start the process, let us look at the reasons for selling your business.

Step 1 – The reason for selling

Whether you poured blood, sweat and tears into your business or quietly grown it over the years, there comes a day when you want to move into another phase of business life. This will usually involve selling your business or businesses, which is generally a much better idea than closing down. If you get your selling process right, you can make a decent profit.

The process is not complex, but it can be time-consuming, which can sometimes cause people to avoid it. You are reading this because you are business-savvy and want the best outcome.

What is your reason for selling? Retirement, buy-out, relocation or a new pet project? Or is it harsh trading conditions, hampered by pandemics and soaring digital commerce?

As with all investments, the aim is always to buy low and sell high. Exiting on a high is always a good option so try to sell when the business is in a strong trading position. Ideal situations are not always possible, so cutting your losses is sometimes the most suitable option. However, that isn’t always possible, and therefore you will need to cut your losses and exit at a sub-optimal time.

Step 2 – Consider working with a professional

You might be pondering whether the cost of a business broker is really worth it. Short answer: it is. By working with a professional, you will not only save time and weeks, or months, of stress, but you will:

  • Improve your chances of achieving an excellent market price.
  • Avoid mistakes that could be costly.
  • Avoid mistakes that are a complete waste of time.
  • Ensure there is no long-term blowback from the deal.
  • Save yourself enormous amounts of stress.
An experienced agent that knows your industry will:

  • Know where to sell your business.
  • Get a higher closing price than you could independently.
  • Speed up the sale period.
  • Reduce your admin.
The professional can also:

  • Run the evaluation of the business and be subjective with sentimental items and identify undervalued items.
  • Source, evaluate and filter suitable buyers.
  • Astutely protect your interests during tough negotiations.
  • Avoid emotional decisions.
  • Advise you on what information is necessary to disclose and when the disclosure needs to take place.
This will free you to focus on maintaining the business as a viable, going concern. The latter point is vital during the sale process. Negative fluctuations in the operations of the business can undermine the success of a negotiation phase. Therefore, it is a priority that you monitor the business closely to prove to the interested party that the business can operate without you, retaining its value within it and not within you.

Other professionals that will add enormous value to the success of the deal short term and long term are experienced corporate lawyers, accountants and tax experts. Together, this powerhouse of professionals will avoid value erosion, make the deal efficient, and minimise risks.

Step 3 –  Increasing the attractiveness of your business

Clean and repair

It’s your brand’s final show so let it put on a good show to potential buyers. Do not only focus on tidy books but also pay attention to cleaning and tidying up the premises. Attend to broken equipment by repairing it, although, if budget and priority allows, preferably replace it and recoup the replacement cost via a quick ROI in the final deal price.

Attention to detail

The aim is to make the business, financials, brand and assets, as deeply attractive as possible to fill the buyers funnel and to harden the sales price. Therefore, the sooner the preparation begins, the better and attention to detail will be important. This is also where a third-party professional will be of assistance as you may not be able to see the wood for the trees by this stage.

Equipment in working condition

To reiterate, the aesthetics or packaging of the business is as important as the way the standard operating procedures and company books. The level of importance of aesthetics, supported by quantifiable structural strength, increases with equipment and machinery used to run a manufacturing business.

It is critical to have your equipment in good condition if your business falls into this category. It doesn’t have to be cutting edge machinery, but it should look well-maintained, operate appropriately, smoothly and effectively and give the impression that it has been cared for over the years. This will indicate that it can operate for many years to come, therefore not requiring short-term, critical capital expenditure by the buyer.


Another attractive asset to enhance would be your customers. Look at your top key customers and start the process of them renewing their contracts that are close to expiry. If you need them to close off their deal faster, evaluate if you can sweeten the deal with a viable lowering of costs.

Up to date records

And lastly, of course, it is essential to have financial records and other important documentation that is up to date, audited and filed correctly. Don’t start your selling process before this is in order, as it will reflect very negatively on your brand if there is a mad scramble when the buyer requests certain information.

Furthermore, even if there is nothing wrong with the ultimate information produced, the fact that it was not available gives the buyer a psychological impression that something might not be in order or sufficient care has not been taken in the business. What, therefore, could also be wrong that they have not ‘picked up on’?

Step 4 –  The process of selling

Selling could be compared to pitching your company to venture capitalists. You need a ‘pitch deck’ of compelling information – an information memorandum or a prospectus.

Business information memorandum

This business information memorandum, or book, will be a comprehensive, A to Z guide of the entire business. The guide should cover, in detail, how the business operates, what the market segments look like, demographics, etc. It is a quantified business plan, operations plan, a strategy and the general ‘how to run this business’ manual.

When this crucial tome is complete, it needs the clincher – a one-page summary. In this summary, you should cover the following points:

  • The premises
  • Your advantages over competitors and your USP
  • Your customer base
  • The potential for growth and the previous quantified growth
  • Your reason for selling the business
  • The standard financials:
  • Revenue
  • Gross profit
  • EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortisation


Now you are ready to put your prized possession out there on the market and start attracting buyers. Nowadays, as with many things in our new digital world, this will involve finding a digital platform on which to promote your business for sale.

The most popular online platforms are currently in the UK are Businesses for Sale, Daltons, Rightbiz and Bizdaq. Some entrepreneurs advertise on Gumtree as well, but your business broker will give you the best advice and direction on the most appropriate platform for your industry and target buyers.

As an entrepreneur, you will undoubtedly have many creative ideas on the sale of your business, and, indeed, there are many ways to make a sale. Exercise your entrepreneurial muscles and think outside the box. Potential buyers can be found amongst your competitors, customers and suppliers, and they will have a deeper understanding of your business.



Business Law & Compliance