Less dependence on you
The company can trade, serve customers and make day-to-day decisions without everything going through you. A second tier of managers with clear responsibilities lowers the risk a buyer prices in.
Preparing for sale
Is your business ready to sell?
A company that is ready for sale earns more trust, stands up to a demanding due diligence and gives you more room to negotiate. There is no score here. The point is to spot what is worth fixing before you start.
Review the six areasThe six areas a sale rests on
For each one, ask yourself what evidence you could put in front of a buyer. Your own feel for the business counts for less.
Quality of revenue
Revenue is recurring or repeat, no single customer dominates, and key relationships don't rest only on your personal contacts. Contracts that survive a change of control help.
Financial information
Monthly management accounts reconcile to the filed accounts. Normalised profit, debt, cash and one-off items can be explained and backed up with documents.
Team and organisation
Key people are identified and on proper employment contracts. Payroll, pension auto-enrolment and right-to-work records are in order, and there is a plan for continuity after the sale.
Contracts and risks
Agreements with customers, suppliers, staff and landlords are signed and filed. Intellectual property sits in the company. VAT, PAYE and corporation tax are up to date, and any disputes are known before due diligence finds them.
Your own objectives
Price, timing, the future of the team, your handover and confidentiality are ranked. Check early whether you meet the Business Asset Disposal Relief conditions, since they must be met for two years before the sale.
How to read your position
Not every area has to be perfect. What matters is separating what you can improve before going to market from what you will need to explain openly during the deal.
Ready to explore a sale
The numbers are reliable, the team keeps things running and dependencies are under control.
Prepare first
There is value, but one or two significant dependencies could cut the price or narrow the field of buyers.
Start with a review
There isn't enough information to decide yet. Getting the accounts, contracts and your objectives in order comes next.
Talk through your company's readiness with a specialist
We help you see which areas to tackle first and, when you are ready, find an adviser with experience of comparable sales. Confidential, no obligation and free for owners.