The decision to sell your business is not one you will take lightheartedly and will ideally form over a period of time, giving you the opportunity to plan and work towards achieving the best result you can.

Sometimes life isn’t so kind and a quick sale will be necessary.

Whichever scenario you’re facing, here are some considerations that could make a big difference in what you walk away with.

  1. In general, the more time you have to plan and prepare for sale, the better the outcome for you.
  2. Seeking help from a corporate finance expert at any stage is sensible. They will have insights into your sector, and how to prepare your business for sale to maximise your return. They will also ensure compliance and the correct documentation is filed. They can even help you prepare the documentation you need, research your potential suitors and provide marketing resources while you carry on running your business.

How to achieve the best price when selling your business

Start planning ahead. Selling your business should be a long term goal ideal, and aiming for 5 years time is ideal.

  1. Consider how to step back from the business – are your managers ready to step up, and do you have a career progression plan for other employees?
  2. Make the business’ future look appealing and reduce risk where possible:
    • Keep innovating – introduce new products and services
    • Invest in information systems and monthly management accounts
    • Tie in major clients and contracts for minimum periods
    • Do not rely on a small number of suppliers or customers
    • Share key accounts across a number of staff
    • Incentivise key staff to stay with future performance related benefits
    • Remove unnecessary costs and liquidate underused equipment
    • Consider your timings on when to sell
  3. Find the right buyer, whether that turns out to be an Employee Ownership Trust, your employees, a competitor, a supplier or a venture capitalist.

Ways to sell your company

  • Employee or Management buy-out
  • Management buy-in
  • Employee Ownership Trusts
  • Passing on to family
  • Total sale or partial sell down
  • Private equity investment or IPO
  • Winding down a partnership

Financial services for selling your business

  • Corporate Strategy
  • Company valuations, due diligence and audit. How do you know what your business is worth?
  • Preparation of company accounts, profit and loss (P&L) statements, tax returns, leases and loans repayment schedules
  • Tax advice – CGT, Income tax, self-assessment, offsetting costs and losses and VAT
  • Complying with employment law regarding your employees
  • Compliance for HMRC and business records

Why choose UHY Ross Brooke?

There will be times when you need to seek the input of a talented corporate finance specialist and business advisor, and we’re well placed to help you. With strong industry expertise across a broad range of sectors, and research and marketing support, we’ll help you to achieve your goals.

By understanding the bigger picture we’ll help you to choose the right time to sell your business, based on the economic environment and your own market position. We have a good feel for upcoming tax changes which can also make a big impact on timings.

If you’re operating nationally or internationally, we’re experienced enough to help with that too. And with step-by-step advice, we’ll be there to smooth negotiations along, help you to find buyers and remove the worry of completion too.

Get in touch with a specialist business advisor