 who has grown your company beyond its early days, you may eventually see 

 as an opportunity to sell and allow the business to thrive without you. Others choose to sell to pursue a new venture, or simply because the right opportunity presents itself. Whatever the motivation, it is important to recognise that there are several key factors to evaluate before completing a sale.

What Is the First Step in Preparing to Sell Your Business in the UK?

The first step in preparing to sell your business is creating a clear exit strategy. This involves valuing your business, reviewing financial and legal structures, and defining personal goals. Early planning helps maximise sale price, attract suitable buyers, and ensure a smooth UK business exit process.

Preparing for the Exit When Selling Your Business in the UK

“Before anything else, preparation is the key to success.”

Alexander Graham Bell knew that success begins with careful planning, and the same principle applies when preparing for a company sale. When selling your company and preparing for the exit in the UK, planning must start long before an offer is on the table. This means building relationships with advisers early and seeking the right legal advice on 

 implications, potential buyers, and the best price achievable.

Building Early Relationships with Advisers

, reminds us that a good relationship with advisers is key. “It's important for entrepreneurs to take time to meet a range of advisors and establish with whom they would like to work. The relationship and trust are essential.”

Engaging advisers in advance helps you prepare for legal and tax issues, secure a strong sale agreement, and approach potential buyers with confidence 

The Road to Exit guide

Creating a Strategic Business Plan for Potential Buyers

Similar advice is shared by Stewart Sanderson, Senior Private Client Director & Head of UK Private Clients at 

. “Invest in a (business) plan with both a short-term and a long-term strategy. This means looking at your current position and thinking about where you’d like to be in the future. But most importantly, ask yourself why you are exiting your company and build your plan after that. This is commonplace in your corporate planning but rarely prioritised for personal wealth.”

A clear business plan reassures potential buyers that the company can thrive under new management or a future new owner, while also positioning the company to achieve the best possible price.

Understanding the Business Valuation and Exit Process

When preparing your exit process, one of the most important steps is knowing how to value your business before putting it up for sale. Professional valuations assess assets, earnings, and industry benchmarks to provide a realistic figure.

The exit process often takes months or even years, so starting early gives you the best chance of success and a smoother transition.

What Documents Do I Need When Preparing to Sell My Business?

When preparing to sell, ensure you have accurate and up-to-date financial statements, tax returns, legal contracts, and details of ownership or partnership agreements. Employment contracts, intellectual property documentation, and supplier or client agreements are also essential. Having these ready streamlines due diligence and builds buyer confidence.

It’s a Team Effort: Preparing for a Business Exit in the UK

 goes beyond reviewing the offer—it requires coordinated planning across legal, tax, and financial areas. “Taking that step requires a lot of previous preparation, and for that, there needs to be skilled legal, accounting and 

 teams working with the individual beforehand,” Rosie reminds us

Top ten tips for preparing to exit your business

Are There Common Mistakes to Avoid When Selling a Business?

Common mistakes include undervaluing the company, rushing the process without adequate preparation, or failing to consider tax implications. Others neglect succession planning or overlook cultural fit with potential buyers. Working with experienced advisers reduces these risks and ensures you achieve the best long-term outcome.

, highlights that pre-sale preparation begins with legal and accounting due diligence, including negotiation and drafting legal documents. Both the business and the owner should be in a strong position to start discussions if the necessary pre-exit reviews, planning, and structure have been completed.

“Many entrepreneurs don’t start a business with the end in mind, so they might need to reconsider the way their company is structured and how they can extract some wealth for themselves,” warns Atkins. “Pre-exit you've got some opportunities to make decisions that you cannot do once you've entered a binding contract of sale. If you want to put assets into a discretionary trust or create a benefit for your employees, you need to prepare beforehand, and you need the right people to advise you on how to prepare and accommodate that.”

Carry out legal and accounting due diligence to ensure compliance and uncover risks.

Extract surplus cash efficiently while considering tax implications.

Develop a business continuity plan to safeguard operations during the transition.

Clarify ownership and shareholding structures to provide transparency for potential buyers.

Plan pre-sale cashflow and gifting strategies to maximise personal wealth outcomes.

Review wills and power of attorney to protect long-term family interests.

Create a financial and investment plan aligned with post-sale goals.

Experts stress that preparing two to three years ahead gives owners time to optimise tax structures, strengthen continuity plans, and demonstrate stability to potential buyers. This early planning creates flexibility and ensures the exit process is not rushed.

Sanderson adds: “At one point there's going to be a transaction, so make sure long before that that the corporate structure is the right one from a tax perspective, and that the lawyers and the accountants have been upgraded. If you started this as a ‘mum and pop’ business or just an idea that has grown rapidly, the local solicitor may not be familiar with the advice needed for this type of business transaction. Therefore, it's critical to lay the foundations early on, ensuring the more efficient path taken, with a sensible structure created to deliver the best outcome.”

Choosing the Best Exit Strategy When Selling Your Business in the UK

Alongside protecting your team and finances, it is vital to decide which exit strategy best suits both you and the business’s future. The right choice balances personal goals with continuity, ensuring a smooth transition and the best long-term outcome. when preparing for an exit: how to prepare for the exit, thinking carefully about strategy is just as important as 

Small businesses: is an employee ownership trust right for you?

Selling to a trade buyer or private equity firm can provide immediate liquidity and, in many cases, the best price 

. However, it usually involves giving up control quickly, so weighing both financial return and cultural fit is important.

Private equity can defy the gloom narrative

An employee ownership trust or management buyout provides continuity and rewards those who helped build the business. This often allows for a phased exit, giving the entrepreneur more influence over the handover.

Passing the business to the next generation secures your legacy but requires planning. Ownership transfers, tax implications, and governance must be considered to give the new management the best chance of success.

The best exit strategy should also reflect your vision beyond the sale. Atkins calls this “business continuity planning.” Entrepreneurs should decide whether they want to reinvest in ventures, act as an angel investor, stay involved as a consultant, or establish a charitable trust that combines philanthropy with long-term growth.

For many, the ultimate goal is financial independence. Creating a balanced investment portfolio ensures that sale proceeds support the same standard of living enjoyed pre-exit, while leaving room for future flexibility.

Considering All Possible Outcomes When Selling Your Business in the UK

Even with careful planning, a business exit may not unfold exactly as expected. That is why preparation must include contingency planning and trusted advisers. When selling your business: how to prepare for the exit, it is essential to think ahead, discuss potential scenarios, and make sure your strategy covers both financial and personal objectives.

, Director at James Hambro and Partners, advises that “ideally entrepreneurs should come to see us long before the sale” so post-sale structuring can be optimised. Skilled legal advice and experienced tax advisers are critical in maximising outcomes and protecting wealth. He explains: “Most entrepreneurs will typically have two primary objectives post sale, firstly ensuring they have enough funds to meet their own expenditure for the rest of their lives, and secondly how to maximise the level of wealth that passes on to the next generation and intended beneficiaries. The weighting of these objectives will often change over time and is analysed as part of the review process.”

Effective cashflow planning helps ensure personal needs are met and that wealth is structured efficiently for long-term security.

 is equally important. Jenkins suggests preparing the next generation early by running smaller investment portfolios for children, giving them first-hand experience of how markets work and how wealth should be managed responsibly.

“Education is key,” remarks Stewart Sanderson, who stresses patience when preparing for a business sale. His advice on how to prepare for exiting your business is clear: “Don't be afraid to take your time. There are important factors to consider, such as maximising your 

 contributions, maximising any allowances for previously unused years. Now more than ever, pension planning is complex, if there’s family involved in the business there may also be broader allowances to consider, these things require time and analysis.”

Education applies not only to preparing family members for wealth but also to understanding the complexities of pensions and allowances.

The exit process can take months or even years. Taking the time to address pensions, allowances, and succession planning ensures the best outcome for entrepreneurs and their families. Rushed exits often leave value on the table; thoughtful planning secures wealth and smooths the transition to new ownership.

Surrounding Yourself with the Right Support

Selling your business is not something to manage alone. Surrounding yourself with a strong management team of advisers provides clarity, protects wealth, and builds confidence in decision-making 

. At Compare Wealth Managers, we offer an impartial route to finding a wealth manager for your needs. Our carefully selected partners, including private banks and leading wealth management firms, provide clients with access to the full spectrum of services needed for a successful exit.

Understanding growth journeys of small and mid-size businesses

 – Engage lawyers, accountants, and wealth managers early to structure a tax-efficient exit and prevent costly mistakes when selling your business UK

 – Whether for freedom, retirement, or reinvestment, define your “why” so your exit strategy supports both financial security and personal fulfilment.

 – Complete full due diligence, audit finances, and optimise contracts; failing to do so can erode value and delay negotiations.

 – Early business exit planning gives time to restructure ownership, strengthen governance, and attract higher offers.

 – Weigh options like trade sale, management buyout, employee ownership, or family succession to align with your future wealth protection goals.

 – Use cash-flow forecasting to test lifestyle, tax, and legacy scenarios, ensuring proceeds sustain you for the long term.

 – Explore philanthropy, reinvestment, or mentoring to make your post-sale planning both financially rewarding and personally meaningful.

Selling your business: How to prepare for the exit

 is a thrilling journey marked by innovation, resilience, and the pursuit of success. As an entrepreneur, you have dedicated countless hours, energy, and resources to building your business from the ground up. There may come a time when you decide to leave what you have created, but are you aware of all the steps involved in exiting your business? Have you covered all the bases? We've taken the time to create a guide to help you navigate the process of selling your business.

Selling a business is a crucial time to enjoy the benefits of your hard work and success. However, the path to a successful 

 is riddled with challenges, complexities, and critical decisions that can make or break the outcome. Entrepreneurs must understand the complexities of the process and navigate it confidently, with knowledge and strategic foresight.

The three stages of selling your business.

How to prepare your business for a successful exit

 Prepare to sell your business by implementing your strategy and potentially changing ownership to optimise its value. Having the right advisers working with you throughout the sale process to ensure you do not lose value on the exit

After selling your business, you need to think about what comes next. This involves protecting yourself after closing the deal, deciding how to use the money you earn, and maximising future opportunities.

Getting your business ready for sale is a long journey involving your entire legal and accounting team working out the best outcomes post-sale for you and your employees 

. Once you’ve done the due diligence and put everything in place, it is time for an offer to appear. To get the best deal for your enterprise, business valuation is key.

Exit strategies for private companies: Seize the opportunity to secure your future

What legal issues should I watch out for when selling a business?

Selling a business requires detailed due diligence and professional advice to avoid legal pitfalls. You’ll need to prepare accurate financials, ensure contracts with employees and clients are transferable, and review ownership or partnership agreements. Having the right legal and accounting team in place helps protect value, reduce risk, and ensure a smooth transfer of ownership.

Where Should You Start When Selling Your Business?

The first step in selling your business is building a structured exit plan. This means assessing financial performance, conducting valuations, and analysing market trends. You should also clarify personal objectives, such as 

 or reinvestment. Early preparation helps maximise value, attract serious buyers, and ensure a smoother, faster transaction.

Finding the right partner for the right price

How do you accurately assess whether the value you think you can achieve for the sale of your business is enough to meet your personal objectives? This can be done by assessing the value of your business against similar companies and considering how much money you will need after the sale. After all, you want to live comfortably after you step down 

Undertaking cashflow modelling to demonstrate suitability of retirement-related advice

“There is of course always a risk that sellers don’t generate enough money from a business sale to meet their lifetime financial objectives, and that this hasn’t been properly assessed. One of the reasons we run cash-flow modelling is to show clients in detail how their financial assets may look based on their planned objectives and how they plan to spend money. This gives a glimpse as to what their life might look like in the future and how secure their financial position will be in years to come” suggests Gareth Jenkins, Director at James Hambro & Partners.

They create a model forecasting likely changes to an individual’s personal net worth based on a number of assumptions, including importantly what annual expenditure might be. This leads to further planning considerations such as how to best structure the client's wealth, how to manage risk and potential future estate planning considerations.

How to know when to sell your business? It’s difficult to say since it depends on the type of business and the location, but many sales brokers recommend analysing the market environment as a first step. Viking, a US-based company specialised in mergers and acquisitions recommends analysing the local economy (is there a demand for a business like yours? Is your city growing?), market conditions (is your economy in a recession or growth period?), Industry trends (for instance, it might not be a good idea to sell your construction business when the housing market is down) and does the market environment favours buyers or sellers 

Financial Planning for Life After Selling a Business

When the financials are trending upwards, sales are booming, the team is strong, and demand is high, it is often the best time to sell your business from a valuation perspective. Exiting your business at its peak might be difficult from a personal perspective, but it is also when it is at its most attractive for potential buyers. However, this is also an important factor to consider with regard to what to do with your proceeds.

When deciding what to do with the proceeds of a sale, Rosie Bullard, Portfolio Manager and Partner at James Hambro & Partners, advises setting out a 

 as to how the excess proceeds from a sale can be invested. Investing too quickly without a long-term plan can result in an undesired outcome, particularly if markets go through a period of weakness shortly after investing.

Is it the right time for me to sell my business?

So, the market’s time needs to be in consideration, but how about your time? Is it the right time for you? Maybe the question you should be asking yourself is: Why are you selling? What are the reasons for selling? Do you want more free time or would you like to reinvest that money somewhere else? This is something Stewart Sanderson, Senior Private Client Director & Head of UK Private Clients at Brooks Macdonald, always asks his clients at this point: “So, you’ve done your due diligence, you have your business plan and are ready to sell, but you might ask yourself: Why am I doing this? Is this the right time to sell? Is this the right buyer? Is this going to be a merger? And if someone comes in, do I want to work for someone else? You might need to rethink your role after the sale, or even ask yourself: Do I need a job? It all comes back to that plan and understanding what you have and what you need for your future”.

The exit may be complete, but have you considered what comes next? How can you ensure a smooth transition of ownership and maintain the long-term success of your business? What steps should you take to support your employees and preserve customer relationships? All 

agree on the need to plan every step from the very beginning, even what comes next 

An emotional exit

Sanderson suggests discussing with your financial adviser to determine your goals and timeframe for making an informed decision. To make a decision and assess your risk tolerance, consider whether you should invest, do charity work, or take a break 

 Asking yourself these questions will help you determine the best course of action. “Do your due diligence, make sure you've got a strategy for the moment the money comes in, which is a short-term thing, and then take your time to work out what you want to do with the benefit of cash flow and of financial forecasting and expect to go on a journey”.

Consumer Support Outcome: good practices and areas for improvement

What specific responsibilities do I have when selling my business as a sole trader?

As a sole trader, you are personally responsible for all business obligations during and after the sale. This means settling outstanding debts, transferring licenses or permits, and notifying HMRC about changes. You must also decide how the proceeds are used — whether reinvested, saved, or allocated for retirement — to secure your financial future.

Ann-Marie Atkins, managing partner at Evelyn Partners, concludes that if you are thinking about giving some of the money away, you also need to consider where that's coming from: your net income or from another form of financial structure. “You can consider if you are able to give away capital/growth or indeed money to charity – this could include setting up your own charitable trust. This could carry additional 

 benefits and you set the criteria as to how people can qualify to be able to benefit. Cash flow modelling can be used to determine how much you can give away pre or post-sale and still benefit from tax reliefs. This will also help you decide if you can afford to make such changes".

Your next steps could benefit many, so talking to your financial adviser early on will show you all the possibilities this sale can benefit you and others.

Remember, selling a business is not merely a financial transaction; it represents the culmination of your entrepreneurial legacy. By planning, considering, and understanding the process, you can confidently sell your business and create a path for future success.

 and cash-flow modelling align your sale with personal goals, ensuring your wealth supports both your lifestyle and legacy.

 – The best time to sell is when your business is performing strongly and market demand is high; miss the window and you risk losing value.

 – A trusted team of accountants, lawyers, and wealth managers safeguards value through 

pre-sale preparation, exit structuring, and post-sale strategy

 – Be clear on why you’re selling, whether the timing is right, and what you want next—avoiding regret and enabling a purposeful new chapter.

 – Rushed investments or poor tax planning can erode wealth. A disciplined 

 – Use charitable trusts and structured planning to ensure philanthropy is both meaningful and tax-efficient, aligning generosity with wealth preservation.

 – Selling your business is not an end but a launchpad—use your proceeds to create an 

 and pursue new opportunities with clarity.

Selling your business: What to be aware of whilst selling

Gareth joined JH&P in 2017 and is a Director in the financial planning team. Gareth has provided financial advice to private clients for almost two decades as a Chartered Financial Planner and a Fellow of the Personal Finance Society. Previous roles within the private banking and wealth management industries have seen him advising onshore and offshore clients across all areas of wealth management, with a specific focus on investment structuring. He is motivated by providing his clients with confidence and clarity around how their investments can support their financial objectives, so they can concentrate on enjoying their lives with less worry. Being trusted to counsel families on their wealth needs is a privilege Gareth strives to repay by providing objectivity in helping them make better financial decisions. 

Director - Financial Planner

Gareth Jenkins

For over a decade, JH&P has been setting the benchmark for wealth management. With outstanding year-on-year returns and numerous awards since its inception, they are determined to continue to offer a service that is built on the foundations of expertise and belonging. At JH&P you will benefit from a team that has been encouraged to go above and beyond for you. With an extraordinary low turnover of clients and in excess of £7bn of assets under management, JH&P are still building a business that they are proud will stand for generations and lead to something special for you and your family. 

JH&P aim is to work with their clients to take a complex subject and make it comprehensible so that informed and well-considered decisions can be made with confidence, so that the overall finances of the family are protected for generations to come. JH&P build strategies to balance long-term ambitions with short-term needs. Their core principle is that financial planning should give clients the tools to comprehend the incomprehensible.

They work proactively with key client advisers to ensure a coordinated approach is taken to tax, structuring and other matters where teamwork is likely to lead to better client outcomes. Their framework captures all areas of wealth planning which include tax efficiency, cash flow analysis, risk management, protection and eventually passing on wealth.

Where appropriate, JH&P draw upon the expertise of its panel of specialist advisers to provide complementary services; from specialist tax, legal to mortgage advice. Once a strategy has been developed, they build a structure which is at all times underpinned by their rigorous investment process. 

It's an undeniable fact that the growth of your assets is the most important objective of investment management. Every wealth manager will share that belief, but what makes JH&P special is how they achieve that goal.

They put a strong emphasis on the delivery of liquidity and managing risk at both a security and portfolio level as they know this is the best way to ensure consistent returns no matter the market permutations. To achieve this, they create diversified, multi-asset portfolios, all of which have a core allocation to global equities. Over the years, global-quoted equities have historically delivered positive real returns through multiple market cycles, however they are not afraid to look to find other ways of making your wealth grow. 

Other asset classes such as fixed income, infrastructure and absolute-return funds allow them to diversify risk and optimise your portfolio, as well as to provide additional sources of income. 

Every investment is associated with some risk, but you can rest assured that JH&P's investment philosophy is one with security and liquidity considerations at the fore. Their approach is underpinned by thorough bottom-up due diligence - they invest the client's portfolios only in markets and asset classes that they fully understand and believe will deliver a strong, risk-adjusted long-term returns. 

James Hambro & Partners

Rosie joined JH&P in 2013, previously working at HSBC Investments and UBS Wealth Management. Rosie looks after direct client relationships, manages portfolios, and has responsibilities in investment research. She is also a member of the asset allocation committee and the stock & fund selection committees. Rosie is also a CFA Charterholder, member of the Chartered Institute for Securities & Investments, she was recommended in Spears 2022 Wealth Managers and a panellist at industry events, including Jersey Finance.

Partner and Portfolio Manager

Mark joined JH&P in 2011, focusing on private clients and co-head of funds research. He has completed the Investment Management Certificate and the CISI Diploma in Private Client Investment Advice and Management. He is also a member of the Chartered Institute for Securities and Investment. In 2014, 2015 and 2017, he was named in the Citywire Wealth Manager ‘Top 30 Under 30’ list of investment managers.

Gareth Jenkins

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Selling your business: How to prepare for the exit

Selling your business: What to be aware of whilst selling

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Gareth Jenkins

Bio

Articles from author

Selling your business: How to prepare for the exit

Selling your business: What to be aware of whilst selling

Start your journey to your Financial well-being

FIND OUT MORE

LEGAL

CONTACT US

Start your journey to your
Financial well-being