 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

, the platform you choose can significantly affect both the speed of the transaction and the final price achieved 

. Brokers and online marketplaces vary by size, industry, and valuation range. This guide explores where to sell your business depending on its valuation, while also guiding company owners through valuation, due diligence, intellectual property, exit strategy, and the steps required for a successful sale.

The rise of the platform economy

Although this guide highlights the most common platforms, professional advice is essential. Solicitors, 

 ensure compliance with UK regulations, prepare the right legal documents, and help avoid costly mistakes during the sales process.

Where is the best place to sell your business in the UK?

The best place to sell your business in the UK depends on its size and value. Larger companies often achieve the highest price on specialist brokers, mid-market firms succeed on platforms like 

, and smaller enterprises benefit from affordable sites such as 

 Preparing to exit your business: It’s your life’s work. Value it.

Where to Sell Your Business Over £1 Million

Companies valued at over £1m attract institutional investors, 

 firms, and high-net-worth individuals. These qualified buyers look for strong financial performance, consistent cash flow, and opportunities for scalability. To achieve a successful sale, owners must prepare carefully, identify the right buyer, and choose the most effective platform 

How has private equity shaped the UK economy?

Independent valuations are essential. Overvaluation can push serious prospective buyers away, while undervaluation risks leaving money on the table. A thorough valuation considers both profits and the value of assets, helping company owners set the right asking price and secure the highest outcome

 and reliefs such as Business Asset Disposal Relief significantly affect the seller’s net proceeds. Early planning with a solicitor or tax adviser ensures the transaction is structured efficiently.

For firms in this bracket, deals often involve staged payments, earn-outs, or deferred consideration. These flexible structures make offers more attractive to relevant buyers.

Large transactions require comprehensive contracts such as an asset purchase agreement, shareholder resolutions, and compliance documentation to ensure a smooth transfer of ownership. Preparing these before listing reassures prospective buyers and speeds up negotiations.

 – Specialises in SaaS, e-commerce, and content firms. Their valuation expertise and global network of buyers makes them a trusted choice.

 – Offers transparent valuations, a vetted investor network, and rigorous due diligence. Particularly effective for digital organisations.

 – A global network with UK offices, providing valuation, marketing, negotiation, and solicitor-backed support throughout the sales process.

For high-value sales, preparation and structure are as important as the platform. Aligning valuation, tax planning, and terms with buyer expectations increases the likelihood of a premium deal and ensures company owners achieve a successful sale.

Where to Sell Your Business Valued £500k–£1m

This valuation range is often considered the sweet spot. Companies here attract wealthy individuals, family offices, and smaller private 

 firms. They are big enough to be scalable yet small enough to be manageable 

Beyond Business Ownership: How to value your business

Professional brokers and valuation tools help establish fair market value. Company owners who present realistic valuations are more likely to appeal to prospective buyers and secure the highest price.

Buyers expect transparency in contracts, financials, intellectual property, and protections around sensitive information. Weak due diligence is one of the most common mistakes sellers make, often slowing the sales process or reducing offers.

Engaging a solicitor or tax adviser early ensures you maximise reliefs and avoid unnecessary costs.

Earn-outs, staged payments, and partial buy-ins widen buyer appeal. These flexible structures can improve terms for both seller and buyer.

In the UK, directors’ resolutions, shareholder agreements, and employee contracts must all be reviewed. Solicitors ensure every legal step is completed to avoid delays in the sales process.

Best Platforms for £500k–£1m Companies

RightBiz – A UK-based platform with strong visibility and relevant buyers in this range.

BusinessesForSale.com – A global marketplace with a large UK audience, known for detailed listings and resources that help firm owners achieve a successful sale.

 – Tailored for digital ventures, offering enhanced visibility and buyer support alongside legal documentation tools.

Preparation ensures credibility. Valuation accuracy, strong due diligence, and flexible deal terms all contribute to smoother negotiations and faster completions. With proper planning, enterprise owners in this range can achieve a successful sale within 6–12 months and know exactly where to sell your business for maximum results.

Firms in this range attract the widest pool of prospective buyers — including first-time 

 and portfolio builders. The challenge is standing out in a crowded marketplace.

Setting a realistic valuation is crucial. Inflated figures drive away buyers, while reasonable pricing attracts relevant buyers who are ready to commit.

Essential documents include financial statements, tax records, supplier agreements, employee contracts, and intellectual property protections. Sellers who present complete files inspire confidence in prospective buyers.

Demonstrating steady cash flow and low overheads reassures smaller buyers who prioritise affordability and reliable returns.

Flexible payment structures, such as staged payments, help widen the buyer pool and support a smoother sales process.

Overpricing, incomplete records, and lack of professional advice are frequent pitfalls. These errors not only delay the exit strategy but may also prevent a successful sale.

Daltons – Affordable listings for SMEs, suited to local UK firms.

) – Best for e-commerce sellers, connecting digital-savvy buyers with online ventures.

BizBuySell – Offers international reach and broker support.

Gumtree – A low-cost option for micro-companies under £100k, attracting first-time company owners.

Smaller firms often compete against many similar listings. Detailed preparation, accurate valuations, and clear growth potential make companies more attractive to relevant buyers. By knowing where to sell your firm, you increase visibility and secure stronger offers.

The most common method is combining a realistic valuation with the right platform. By maintaining clean records, protecting intellectual property, and offering flexible deal structures, company owners can attract qualified buyers and achieve a successful sale.

Final Thoughts: Where to Sell Your Business

Selling your company requires time, preparation, and a clear exit strategy. High-value firms perform best with global brokers such as FE International or Empire Flippers. Mid-range companies thrive on RightBiz or BusinessesForSale.com, while smaller firms often succeed with cost-effective sites like Daltons, Exchange Marketplace, or Gumtree.

By aligning valuation, legal documents, intellectual property, tax planning, and the operating model with the right platform, firm owners maximise both visibility and financial outcome 

. Understanding where to sell your business ensures you reach relevant buyers, streamline the sales process, and achieve the highest price from qualified buyers.

Selling your business: your responsibilities (limited company)

Maximise your sale price with top brokers

 – Use trusted firms like FE International or Empire Flippers when selling companies valued over £1M.

Sell e-commerce businesses on Shopify Exchange

 – A reliable marketplace connecting sellers of £500K+ e-commerce businesses with digital-first buyers.

 – Platforms such as Daltons Business and BizBuySell help small to medium-sized firms (up to £500K) attract more investors.

 – For sales under £100K, Gumtree offers affordable visibility and access to motivated local buyers.

Choose the right business-for-sale marketplace

 – Increases exposure, drives competitive offers, and ensures a smoother, faster sale process.

Where to Sell Your Business

Having a successful business means also owning a company that investors find attractive. 

 takes time and things may not go as planned. Learn how to protect your business (and yourself) during a sale.

 in the UK, the decision to sell their business can be both exciting and nerve-wracking. Whether you're planning to 

, move on to new ventures, or simply cash in on your hard work, selling your business is a significant milestone. However, amidst the exhilaration of putting your business for sale, it's crucial not to overlook the importance of business protection.

, reflects on the importance of business protection, particularly during this time. “If you are on your two-year plan to exit and something unexpected unfortunately happens to you during that period, what happens to your business, does it disappear? How does that affect your family?” Saisha suggests thinking about protecting your company from an early stage, even before considering selling: “There can be some short-term protection requirements, such as having a power of attorney or an appointed executor. When life throws the unexpected at you, halfway through a business transaction, your lawyer or your spouse can act for you”.

Bear in mind that even the best thought-out plans can be altered by unforeseen circumstances, so make sure that you have the right people making the decisions for you, and a plan B in place, that can start with putting all the facts and the information together to work on a contingency plan 

Half of business owners have no exit strategy

If things go according to plan, the exit takes place at the time and for as much money as we agreed on with the buyer. However, an exit (or merger, or family succession) still requires 

 and cautious procedures from both sides: Be ready for thorough due diligence from potential buyers, a process that involves risk and compliance check, conducting an investigation, review, or audit to verify facts and information about your business. They will want to review everything, from financial records to operational processes. Having all relevant documents and information readily available will expedite the process and build trust with potential buyers 

Record keeping and due diligence – Fulfilment House Due Diligence Scheme

Your business's financial health is also a critical factor in attracting buyers and securing a favourable deal. Therefore, maintain accurate and up-to-date financial records, including balance sheets, income statements, and cash flow statements. If your business has any outstanding debts or financial liabilities, work to resolve them before entering negotiations.

The “triple D” threat (Death-Divorce-Dispute) and how to protect yourself from it

Lots can go wrong while you're getting things sorted, like arguments with a business or partner, a breakup, or even death. Saisha Penny suggests acquiring the services of either an adviser who would represent your interests in these situations, or a third party who can offer you a protection package 

How can I ensure our business continues after I die?

“There will be a cost but if you became ill, or if you passed away, you’d still make sure that the business takeover can continue and your employees keep getting paid during that time. Often entrepreneurs have small businesses at the beginning, which can often be all-encompassing, so if they are unable to work, protection policies can offer peace of mind”.

Employee or Customer Transition and business value

Consider how the sale will impact your employees and customers. Prepare a plan for informing and reassuring employees about the transition to new ownership. At the same time, maintain open communication with key customers to ease their concerns and ensure a smooth transition, as customer relationships often play a significant role in a business's value 

Retail Banking: Business Continuity Planning

Stewart Sanderson, Senior Private Client Director, Head of UK Private Clients at Brooks Macdonald, points out that the protection in these cases is not just for you, but for all those involved in the sale: “It's about ensuring that there is the ability for the business to continue operating in the event of the loss or absence, or illness of a key member of staff or an investor. If you want to sell only a part of the business, but the holder of the other part passed away or was getting divorced, their capital could end up being settled on the open market, meaning you could lose control of your business”.

To avoid getting an unfair price for the business or having it stuck in a scenario where you couldn't make decisions, Stewart strongly recommends setting up a structure where you would be in control of the entire business in such situations. “You can have an agreement in place to buy the shareholder’s capital at a predetermined value, and after around seven days you carry on running your business. You maintain control and can proceed with the sale”.

Contracts, NDAs and Intellectual Property Protection

One of the most valuable assets of any business is its intellectual property (IP). This includes trademarks, copyrights, patents, and trade secrets. Before putting your business on the market, it's essential to safeguard your IP to maintain its value during the sales process. Ensure that all IP registrations are up to date and consider consulting an intellectual property attorney to protect your intangible assets 

The Knowledge Asset Commercialisation Guide

, suggests revising the structure of the company not only to potentially alleviate taxes at the selling point but also to protect the assets of the company. An example can be carving off elements of your business relative to what you are selling and considering if a pure trading vehicle works or if you should have a holding company and a trading company underneath.

Often clients move valuable intellectual property into one legal entity while they then hold the “trading company” which essentially takes care of the risky activities and holds the liabilities of the business. The Holding may license the intellectual property to the Trading Company to use in the business, but the ownership of the intellectual property always stays with the Holding Company.

Atkins mentions that cashflow forecasts can help project where the proceedings of the sale should best be allocated (for instance, in the holding company) to not pay tax on exit or de-merge and sell the Trading company and pay 

 on the exit but then look to reinvest tax efficiently. Mathematically, you can visualise scenarios in this space relative to your spending patterns, investment views and family situation. No one outcome is the same but seeing it visually with your own views can help you make informed decisions about which route to take and what tax to pay when.

Legal compliance is non-negotiable when selling a business. Ensure that your business complies with all relevant laws and regulations, including tax requirements, employment laws, and industry-specific regulations. Any pending legal disputes or compliance issues should be resolved before the sale. On that note, review all contracts and agreements your business has entered, especially those with suppliers, employees, and customers. Ensure that they are in good standing and that there are no unresolved disputes. As mentioned above, a buyer will scrutinise these contracts during due diligence, so it's important to address any potential issues in advance 

Expectations of firms selling client banks

When sharing sensitive information with potential buyers, protect your business's confidentiality through Non-Disclosure Agreements (NDAs). These contracts stop buyers from sharing or using your private information for anything other than considering buying.

Ann-Marie Atkins also emphasises that there's a need for a better understanding of the business relief environment, particularly when it comes to taxes. A shift in tax position changes hugely at the point of sale, meaning that if the seller's UK domicile died shortly after sale the potential tax position in respect of 

 (IHT) could be hugely different. Before you sell your trading business, those assets are exempt from tax on death, but the day that you sell, that money comes into your bank account, and if you were to die prematurely, you could end up paying tax at 40% on assets within your estate (relative to the overall value of assets and how your wealth is passed) 

Business Relief for Inheritance Tax: What qualifies for Business Relief

Atkins explains that individuals can consider investing back into Trading Businesses or “off-the-shelf trading solutions” and /or the Alternative Investment Market (AIM) within 3 years from the date of sale as this removes assets from being subject to IHT immediately (as long as qualifying).

Alternatively, individuals can consider investing in them later down the line and accept they have to hold them for 2 years before they become exempt. The views here are that if clients are keen to reduce inheritance tax (IHT), are not opposed to risk and want to retain access to capital and income, these options should be considered 

To get into the business relief space, you need to have a wealth manager or financial advisor who caters to your needs and those of your business. “You need more than the traditional vanilla 

, someone who’s looking at alternatives that give those tax advantageous options which might suit your family situation and your circumstances better. And if you're not sure your advisor can do that, take some time to educate yourself before making any further decisions”, Atkins remarks.

Selling a business in the UK is a complex process, and 

 can make a significant difference. Get assistance from professionals who specialise in law, finance, and taxes. They will help you sell your business and guide you through the process. Their expertise will ensure a successful deal. “It's of utmost importance that you have at least two years ideally three before [the sell] to work with this team of experts”, Atkins reminds us.

Exiting your business is a momentous step in your entrepreneurial journey. While it can be an exciting and financially rewarding endeavour, it also demands careful attention to business protection. To increase your business's value and have a successful sale, prepare and seek professional help. This will benefit both you and the buyer. Remember, thorough preparation and attention to detail are key to a smooth and profitable transition 

Divesting and optimising

 – Safeguard company assets and personal interests with structured risk management during the sale process.

 – Verify financials, highlight risks, and give buyers greater confidence in your business.

 – Address death, divorce, and disputes with clear succession planning and legal safeguards.

 – Ensure a trusted representative can act on your behalf if required.

 – Register trademarks, patents, and copyrights to strengthen business value and buyer appeal.

 – Keep financial statements, tax returns, and shareholder agreements ready to speed up due diligence.

 – Rely on experts to draft contracts, manage NDAs, and resolve disputes for a smooth transaction.

Selling your business: Have you thought about business protection?

Head of content writing at Compare Wealth Managers.

Mariel Diez

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Articles from author

Selling your business: How to prepare for the exit

Where to Sell Your Business

Selling your business: Have you thought about business protection?

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Financial well-being

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Mariel Diez

Bio

Articles from author

Selling your business: How to prepare for the exit

Where to Sell Your Business

Selling your business: Have you thought about business protection?

Start your journey to your Financial well-being

FIND OUT MORE

LEGAL

CONTACT US

Start your journey to your
Financial well-being