THE BEST WAY TO SELL A BUSINESS
FOR THE HIGHEST PRICE
Our complete no nonsense guides and savvy insights!
Main sections:
Selling A Mid-Market Business (£5m+ in turnover)
Selling The Smaller Business (below £5m in turnover)
Other Sections:
Business Valuation, How Much Is My Business Worth?
Selling A Business Without Using A Business Broker (DIY Sales)
All About Business Brokers And Choosing One
Warnings About Buyers / Dealing With Buyers
Miscellaneous Other Advice For Sellers
A Section For Buyers / Acquirers - Answering Buyer Questions
Welcome to the UK's most comprehensive, unbiased and most visited repository of information on how to sell a business.
Smart business owners take the time to learn what they need to know before going to market or employing a broker. It pays to do the research.
SELLING A MID-MARKET BUSINESS?
(above £5m in turnover / £500K in Profit Before Tax)
Most Read Articles
The UK's most comprehensive guide to selling mid-market businesses - finding the right expertise, getting the best deal. A must read for shareholders of larger businesses.
Distilled from over a decade of experience assisting mid-market firms with finding the perfect 'broker' best placed to get shareholders top value.
Don't like the idea of paying advance fees? Want to pay only on success? No competent M&A firm in the UK operates on that kind of arrangement! But you can tweak their fee structure to your advantage.
Note, though, that it's not business brokers who sell larger businesses. Read more here.
"When I wanted to sell my 3rd business I hired Clinton to use his vast network and his intimate understanding of the industry to help me find the right partner / broker...
Most importantly, he matched me with a broker I would not have found myself, someone who I am confident is the spot-on right firm..."
Bal Mattu, Founder, IdeasCast
Talk with me before you speak with business brokers! You'll learn something new and valuable no matter what your expertise.
Other Mid-Market Specific Advice
Arm yourself against the main games they play. Not everyone who claims to be a genuine investor is actually one. And here's how best to deal with the £1 Charlies (unfunded buyers who pretend to be funded, provide fake Poof of Funds etc)
Getting the best price for corporate / enterprise businesses
Preparing a mid-cap business for sale
The questions that needed to be answered internally
Ensuring no changes to the business in the pre-sale period
Engaging the right expertise to handle the sale
Tips on using such external 'advisory' services
Taking advice on fixing what needs to be fixed before going to market
Keeping foot on pedal so business continues to perform well
Ensuring confidentiality so as to not spook staff, customers, suppliers etc.
Being flexible on deal terms; finding innovative (& more profitable) deal structures
Using other professionals where needed
TOP READS FOR SMALLER BUSINESSES
(below £5m in turnover)
In the £1m to £5m range
(finding the 'right' broker is extremely difficult)
How to find the right business broker?
How much do business brokers charge?
How to sell a business for a lot more than the 'valuation'
Why do I have only 5 interested buyers for my businesses when others have 50+ buyers?
The rule of thumb is that one buyer is as almost as good as no buyer. Deals almost NEVER complete if there's just one buyer. The larger the number of qualified & serious buyers, the better the chance of deal completion and the better the price.
There are many business acquisition courses around that teach buyers how to buy a business with no money down. These are some of the most dangerous buyers around and vendors need to learn how to protect against them.
For All Small Businesses
One of the biggest mistakes small business owners make is starting by calling several business brokers "to get valuations"!
DON'T
Brokers often provide unrealistic valuations in order to sign the client up, but many are notorious for delivering no results.
Smart owners avoid that mistake and start with unbiased advice. They book me by the hour or first speak with their accountant / other trusted, unbiased M&A adviser.
For Sub £1m Turnover Businesses
The brutal truth business brokers don't share: Over 90% of micro businesses that attempt a sale FAIL. It's near impossible to sell a micro business unless it's properly prepared first.
Thoroughly researching articles on this site is your best bet to successfully beating the odds and closing on a sale.
With businesses of this size, business owners are better off handling the sale themselves as no reputable business broker will take these on as the margins / commissions are just too slim. See our articles below for DIY sellers
(A business isn't worth a multiple of earnings or even a multiple of EBITDA. Spend some time on this piece & you're guaranteed to be in a far better position to get top price for your business.)
HOW MUCH IS MY BUSINESS WORTH?
For Mid-Market Businesses (above £5m in turnover)
Larger businesses can't rely on valuations by business brokers or "ball park" multiples often bandied about! Mid-market firms can and do sell for much more than those 'ballparks'. And in all-cash deals (examples available on request).
But it takes a few thousand in fees to get a professional valuation done.
Fortunately, there are ways to get valuations from the top qualified valuation professionals at no cost. Book a free call to find out how.
(A business isn't worth a multiple of earnings or even a multiple of EBITDA. Spend some time on this piece & you're guaranteed to be in a far better position to get top price for your business.)
A detailed look at attributes that persuade acquirers to pay a higher price. What vendors think acquirers want is rarely what they really want! Here's how the people with the money think.
Other Valuation Related Articles
If the information on this site resonates with you, and you want clean, unbiased advice, and your questions answered:
Book a free consultation (for businesses with £5m+ in turnover)
Book a paid consultation (for all smaller businesses and industry professionals - lawyers, fund raisers, acquirers etc)
"Clinton offers creative solutions to complex business situations and his ability to stay ahead of the curve when it comes to buying and selling businesses is especially impressive. I am delighted to give Clinton Lee my highest recommendation...."
Barry Dunlop, Chair, Renewable Living Ltd
The Truth About Small Business Valuations
It's not true that a business is worth 'only what someone will pay for it' but...
Valuations by business brokers often can't be trusted
Business owners need to focus on how to attract higher offers, not "what is the value?"
Low profit is not necessarily a barrier to high price
Why a valuation is pointless (and how you can 'easily' get double the valuation)
How to get the best price for your debt
Valuing and selling a company that has large losses on the books
Avoiding business valuation traps
The value of a business also varies depending on whether it's an Asset Sale or Share Sale.
FOR DIY SELLERS: BUSINESSES FOR SALE BY OWNER
Top Reads
Micro businesses (under £1m) are better sold by the owner than broker. Here's our guide to a DIY sale.
A detailed look at the whole process to arm you with all you need to conduct a DIY sale as the best brokers don't take on the really small businesses. The better the broker firm, the higher their threshold, generally speaking.
The Top 10 things a DIY seller needs to know
There are two ways to sell a business - An Asset Sale vs Share Sale. It's important to know the difference as there are major price implications (and tax implications, too).
Why it's important to vet buyers at the start ...and how to weed out the tyre kickers
There are many business acquisition courses around that teach buyers how to buy a business with no money down. These are some of the most dangerous buyers around and vendors need to learn how to protect against them.
Practical Matters
"I was fortunate enough to use Clinton's services back in 2017 and he was a superb ally, a walking M&A encyclopedia and a genuine voice of reason at all times"
Ian Riches, previous owner of Kiasu International Ltd & Kiasu Workforce Ltd
Book a paid consultation with Clinton
Talk with me before you speak with business brokers! You'll learn something new and valuable no matter what your expertise.
Other General Advice For DIY Sellers
How to sell a business as a bolt-on
Why a valuation is pointless (and how you can easily get "double" the valuation)
Not everyone who claims to be an investor is actually one. Arm yourself against the main games they play. And here's how best to deal with the £1 Charlies (unfunded buyers who pretend to be funded, provide fake Poof of Funds etc)
ALL ABOUT BUSINESS BROKERS
Business Brokers
Everything you ever wanted to know about business brokers that nobody told you
The UK National Directory of business brokers
How much do business brokers charge?
The market is simply huge - there are 1,000 'broker' firms in the UK who sell businesses!
(which is why finding the 'right' broker is extremely difficult)
Choosing A Business Broker
I help larger businesses find the right broker to handle the sale based on industry, size of business, owners' exit goals etc. I've been doing this since 2015 after a 30 year career building, buying & selling businesses.
Book a call.
"Clinton is a professional operator with a vast array of knowledge and connections in the M&A sector.... For those considering an exit he provides a balanced and qualified assessment on the advisory marketplace."
Lee Wojtkiw, Owner, The Beauty Academy Ltd
Common Questions
How good is _____ broker? Detailed reviews & feedback on various business brokers - KBS, Blacks, Turner Butler etc.
What's a fair fee to pay a business broker? Do I need to pay a retainer?
Why my business broker isn't attracting buyers?
(a light hearted look at what's really happening behind the scenes at the business broker's operation)
Interested in becoming a business broker? In taking this on as a career?
What kind of reputation does this industry have as a whole?
Spoiler alert, it's not very good. However, there are literally hundreds of really, really good brokers as well!
SELLER BEWARE: WARNINGS ABOUT BUYERS
General Warnings About Buyers
Over the last decade or so, the average quality of buyers has deteriorated significantly, driven largely by £1 Charlie courses (teaching Joe Public how to buy businesses without investing money or taking any risk!)
£1 Charlies generally give the appearance of being fully funded & even fake bank statements. Sellers end up wasting a lot of time with them and/or getting badly burnt. Read about how to detect and protect against them here.
Outside of £1 Charlies, here are other buyer tricks that sellers need to be aware about.
For Mid-Market Businesses (above £5m in turnover)
The larger the business, the cleverer the games buyers play. Where there's big money, there's always big deceit.
Book a free call with me as early as possible if you've been contacted by a buyer / investor.
Been Approached By A Buyer?
It's been established that in excess of 80% of those claiming to be buyers are not genuinely interested in buying a business at a fair price.
It is dangerous to deal directly with them as many have sophisticated games they play against vendors. Read about those games here.
Book a call with me (free call | paid call) if you have a buyer who has approached you.
MISCELLANEOUS OTHER ADVICE FOR SELLERS
General Advice
Does a seller have to accept deferred payment terms or can they insist on an all-cash deal?
Online locations where you can have sensible discussions / ask questions, get feedback from other buyers / sellers of businesses
How business buyers cheat sellers- what sellers need to watch out for
How to do recasting / normalising of accounts
A Good Starting Point
Apart from being the author of the material on this site, I'm an accountant who has bought and sold numerous businesses (with my own money) and advised on 1,000+ other deals. Get unbiased advice from me before you speak with business brokers.
"Clinton is straight talking, highly professional and extremely knowledgeable... I can honestly say that what-ever outcome you want or need you can feel absolutely assured that Clinton will listen and get the best results. I can't recommend him highly enough.."
Janet Wood, owner of Silent Customer, a market research agency
Frequently Asked Questions
The #1 question business owners start with is this: What is the value of my business? We have a whole section on valuations.
Other questions that crop up:
What are the main online market places where businesses are listed for sale?
Who is the best broker for my business?
I've met with a business broker. How can I tell if he's any good?
Can I find someone to negotiate with my buyer?
How much work does a business broker really put in to get buyers?
Why it's important to have an 'expensive' M&A firm / advisory firm sell larger businesses rather than a trusted individual with M&A experience?
What part does profit play in the sale of a business?
Is it possible to sell an insolvent business? How?
BUSINESS BUYERS, ACQUIRERS & INVESTORS
Cons & Scams in business buying / selling and how to avoid them
The rest of this page is under revision. Please bear with us
The differences | Getting the best price for corporate / enterprise businesses
Preparing a mid-cap business for sale
The questions that needed to be answered internally
Ensuring no changes to the business in the pre-sale period
Engaging the right expertise to handle the sale
Tips on using such external 'advisory' services
Taking advice on fixing what needs to be fixed before going to market
Keeping foot on pedal so business continues to perform well
Ensuring confidentiality so as to not spook staff, customers, suppliers etc.
Being flexible on deal terms; finding innovative (& more profitable) deal structures
Using other professionals where needed
Some of the best brokers specialise in selling businesses in a particular industry or sector. Using one of these can make a big difference to price. We explain the pros and cons of using a sector specialist.
The Internet's most comprehensive coverage on this important topic and one of our highest visited pages. Price, CG tax, professional fees, VAT and a lot else depends on whether you go for one or the other.
Seller Pros and Cons of an asset sale
Seller Pros and Cons of a share sale
Have a business with at least £5m in revenue and £500K in pre-tax profit? Book a free consultation with Clinton, the author of the above articles, to raise any questions you have about the sale process, finding the right professional assistance, whatever.
The smaller the business, the less sense it makes to use a business broker. However, it takes a lot of time and it takes a fair bit of knowledge about selling, because selling a business is unlike selling anything else. The below articles aim to arm the DIY seller with the savvy they need.
Need any assistance? There's the option of a paid consultation.
Here are seven important steps you need to take to blow the valuation right out of the water and walk away with a lot more than your business is worth.
From generalist sites to sector specific portals, from UK marketplaces to global ones, from free listing sites to the more exclusive paid ones.
Most buyers only want profitable businesses. But 88% of UK SME owners lose profits unnecessarily. Profit Boosting Projects can help exit results.
If you've got significant assets in the form of debtors, it may be worth liquidating that asset - selling the debt - before putting the business up for sale and giving that asset to the buyer.
It's easy to let the cat out of the bag! Speaking with brokers is particularly risky. How do you keep safe?
The more buyers you have competing for your business the higher the price you're going to walk away with. Learn the simple changes you can make to get three times the prospective buyers. Importantly, they'll be better qualified, more highly targeted candidates!
There's no shortage of people offering to value businesses - most brokers offer a free valuation service - but can you rely on these figures? And how can you get a professional valuation done, a valuation that reliable enough to guide your strategic decisions?
There's no shortage of people offering to value businesses - most brokers offer a free valuation service - but can you rely on these figures? And how can you get a professional valuation done, a valuation that reliable enough to guide your strategic decisions?
Even a minority shareholder holding just 1% of the shares can hold up the sale of a business if they are not happy with the business being sold or the price being offered.
Most businesses we talk about on this site are successful, going concerns. What happens, however, if the business is insolvent or close to insolvent?
Vendors often describe their business as an ideal "bolt-on". Here's an insider tip: That's one of the most damaging things you can say about your business.
Learn from these mistakes by some of the largest brokers in the UK (who should really know better!)
Can you exit your business by selling your retained (accumulated) losses for someone else to use against their profit to reduce their Corporation Tax bill? And how much can you get for your loss making business?
Are they ignoring your requests for information, not introducing you to the seller, not responding to your queries? It's because you're not doing this correctly.
Find the right acquisition opportunity is an art form in itself!
The scattergun approach is not efficient
Using a professional to contact brokers etc will yield better results
The right way to find opportunities
Looking for a £1, no money down deal?
The Internet's most comprehensive coverage on this important topic and one of our highest visited pages. Price, CG tax, professional fees, VAT and a lot else depends on whether you go for one or the other.
Buyer Pros and Cons of an asset purchase
Buyer Pros and Cons of a share purchase
There are a lot of courses around from 'gurus' claiming they can teach anyone to buy businesses. Some claim it's easy to buy a business without investing money or taking risk. Do not sign up for any course, or even attend an initial free seminar, till you've read this.
Generalist sites, sector specific ones, both UK based and global.
This was the advice we put together for a paying client who was considering packing in the day job in the city and moving to the country to buy a newsagent type business. We release it now in the hope it will help other investors considering such a business purchase.
Business brokers simply love giving free valuations. Free valuations costs them nothing but do serve "to get the punters in". But there are risks to getting a free valuation.
It's a common misconception that you have no influence over how buyers value your business and therefore how much they are willing to pay. But there's a reason why some firms sell for a lot more than similar other firms ...even when they've never made a profit.
Yes, it's a genuine offer. But what's the snag?
Did the broker say he's got a list of thousands of eager investors who're hunting for businesses just like yours? Or that he can sell any business? Is there a way to test the claims without committing to a contract?
Why would you choose a business broker who has a 10% success rate over one who has a 90% or 100% success rate with selling clients' businesses? Here's why.
Some of the best brokers specialise in selling businesses in a particular industry or sector. Using one of these can make a big difference to price. We explain the pros and cons of using a sector specialist.
We disclose a small selection of data from our database to give you an idea of why it is so difficult to find the right business broker for your business...and what you can do about it .
Using a broker to sell? You need to know that not all you see in the press about brokers & Business Transfer Agents is true. We have some excellent brokers in the UK. We do, however, also have the other type.
Here's what you're likely to hear from business brokers and here's how to interpret what the broker is really saying. We include tips on how best to play these situations and come out a winner.
What are the typical business broker's fees / charges? We cover the subject with various example of not just fees but, importantly, fee structures.
Did the broker say he's got a list of thousands of eager investors who're hunting for businesses just like yours? Or that he can sell any business? Is there a way to test the claims without committing to a contract?
It's not unusual for business owners to sign up with a broker and have hardly any enquiries (except from the odd tyre kicker). This light hearted article explains just why your phone isn't ringing off the hook.
Some brokers post an ad online and sit back. Others are a lot more proactive in hunting buyers down. You pay more for the latter broker, but is he really putting in the work? Here's how you can motivate your broker.
MORE ARTICLES:
Grab yourself a coffee. When we said, 'long reads,' we weren't kidding. Maybe bookmark this page?
From fees to how to find the right broker ... everything you ever wanted to know on the subject, and then some.
The UK's most comprehensive guide to selling mid-market businesses - finding the right expertise, speaking the right lingo, getting the best deal.
Here are seven important steps you need to take to blow the valuation right out of the water and walk away with a lot more than your business is worth.
A detailed look at the attributes that persuade a business buyer to pay a higher price. What vendors think that acquirers want is not really what they want! When selling a business, it's important to know how the people with the money think.
No, a business isn't worth a multiple of earnings or even a multiple of EBITDA. Spend some time on this piece and you're guaranteed to be in a far better position to get top price for your business.
A detailed look at the whole process to arm you with all you need to conduct a DIY sale without the use of a business broker or business transfer agent.
80%-90% of businesses coming to market don't end up finding a buyer! That's partly because most business owners don't choose the right business broker.
The smaller the business, the more difficult it is to sell. 80%-90% of small businesses going to market FAIL to find a buyer. Even with a great business, your chances are not good. In other articles, we cover how to improve the odds.
£1 Charlies constitute probably 80% - 90% of the buyers in the market today. They give the appearance of being serious & funded buyers but they are not; they have ulterior motives. Learn how to spot them and protect yourself.
One needs to be very careful when responding to buy-out offers. All is not what it seems. Here are the top ten things you need to know about how to play this hand.
Some buyers are only interested in stringing you along till they've extracted information. Others have a far more devious intent! As a seller you need to protect yourself. We've put together the M&A equivalent of a psychometric test.
Most business owners who believe their business has value are going to be disappointed. It may have value to them but not 'resellable' value. Your small business may be worthless ...unless you make some changes now!
There are 1,000 business broker firms in the UK. But can you find one right for YOUR business based on the size / sector / location / other attributes of your business?
Our most visited page ever - real life horror stories. Getting the right broker can make a sizeable difference to your chances of selling & the price you achieve, but getting the wrong broker isn't much fun. Think a no-sale-no-fee deal is safe? These business owners thought they had a 'no risk' deal yet ended up losing their house!
The BTA term is used only in the UK. We cover BTAs and all you need to know about them.
If you want to start researching brokers, Google is not your friend. The top 100 results in Google are the brokers best at SEO, not best at selling businesses.
It's useful to have them all in one place, we can't think why nobody has done this before! Anyway, here are the top places to list a UK small / medium business for sale.
Why does negotiation involve several hours of actual talks and several prior days of preparation? Because that's what is required to get the best deal. Negotiations for the sale of a business are a lot more than just agreeing a price!
Fancy being a business broker? Or working for one? How do you train to become a business broker? Do you need to qualify first?
Have a question not answered on this site? Send it in, we may add it, and our answer, to this list. (Your anonymity is 100%, we don't disclose your name or company.)
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