For many people, selling their business is the culmination of many years of planning. You’ve built this incredible machine and now you’re looking to step away, either because you want to move on to another business venture or because you are ready to settle down and enjoy the fruits of your labour.
Selling your business can feel overwhelming. In this guide, we will talk you through the best way to sell your business in the UK.
Valuation
It is really important that you invest in an independent valuation before you start the process of selling your business. Many business owners over-value their business and are left disappointed when they try to sell it. Before you set your sights completely on the sale of your company, make sure you know how much you are likely to get. This means you’ll list your business for the correct price (which means you are more likely to sell it quickly) and also that you can plan properly for your future.
You should also research any tax you might need to pay as part of the sale when you are considering your final numbers.
Prepare your business for sale
You must make sure that your business is ready for sale. That might mean making major or minor changes in the run up to listing your business for sale. Build a strong team, tidy up your premises and equipment, settle any ongoing disputes, and make sure your contracts and leases are clear and in order. You’ll want your accounts in order, pass responsibilities to your management team, and prepare different deal structures to offer to potential buyers.
You should view this preparation in the same way you would if you were preparing your house for sale.
Time your sale
It makes absolute sense to time your sale to a period where its revenue looks most attractive, so think carefully about this. If Your key period is Christmas, it would make sense to list your business for sale in the new year, when you can report large sales volumes across the last quarter.
Create a sales brochure
You can’t possibly remember every detail about your business, so a sales brochure containing key features is of paramount importance.
It should consist of a one-page summary of USPs, turnover, potential growth, and reasons for sale to grab attention, then expand to include more detailed information about operations, premises, leases, equipment, and other assets.
Prepare for due diligence
Any buyer who is seriously interested in your business will want to carry out due diligence to make sure they are getting a fair deal. This will flag any glitches in your company and those will very quickly lose their interest, so it is worthwhile paying a professional to conduct a due diligence check before you list your business for sale, then ironing out any issues before a buyer pays for their own.
Companies conducting due diligence will look for:
- liabilities against the company,
- detailed financial documents and tax returns for three years are available,
- statutory registers are up to date,
- properties and assets included in the sale,
- shareholder information and structure is clear,
- intellectual property is properly protected,
- contacts are up to date and clear,
- the right business insurance is in place.
A professional will help you determine what potential buyers might pull up during their due diligence checks and give you solutions to either explain these or iron them out.
Find a buyer
There are websites that list businesses for sale, or you can list your business for sale in local newspapers or national business publications. You can promote your business for sale on social media or, if you would rather the sale was under the radar, you can use an off-market broker, who will match you to potential buyers and help you make the sale. Off-market brokers claim their fees from buyers, which means this is an effective, non-disruptive and cheap was of selling your company.
Be flexible
Business sales are about compromise and you definitely will not get everything you want, so it is really important that you are patient and flexible when you’re selling your business. Professional services will help you keep your eye on your end goal and non-negotiables.
Post sale tasks
Once the sale has gone through, which your solicitor is largely responsible for, you’ll need to tick off these post sale tasks.
- Tell your employees, giving them as much detail as possible about what will happen next,
- pay any tax that is due on the sale.
Yorkshire Change can help
Yorkshire Change can help you navigate this complicated time.
We’re all about working closely with our clients from day one and matching them to our best consultants. If you would like to find out how we can help you, or if you just want to find out a bit more about our approach or our current projects and clients, please contact us for a no obligations discussion.
Call 0333 090 8710 to speak to a dedicated member of our team. If you would rather receive a call back, please fill in the contact form on our ‘contact us’ page.