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 

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

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?

Selling your business is a significant undertaking that requires careful planning and execution. We've talked to several financial advisers to compile a list of the most important aspects to consider when exiting your business. They emphasise the importance of preparation and strategic decision-making throughout the process, with the right team guiding you before, during and after the entire operation. 

Embarking on the journey of selling your business is a significant step in your entrepreneurial career. As you prepare for the transition, it's crucial to be aware of the complexities and challenges that come with the process. To guide you through this complex journey, we've compiled a comprehensive guide with insights from financial advisers. Here are the 10 key steps to keep in mind:

1. Build Strong Relationships with Advisers Early On

Develop a comprehensive team of skilled legal, accounting, and 

 professionals to guide you through the sale process."Entrepreneurs need to take time to meet a range of advisors and establish with whom they would like to work. The relationship and trust are essential" remarks Rosie Bullard, Portfolio Manager and Partner at 

 and Partners. Make sure you surround yourself with trusted people who can accompany you throughout the entire process. 

2. Invest in a Comprehensive Business Plan

"Invest in a (business) plan with both a short-term and a long-term strategy... Ask yourself why you are selling your business and build your plan after that." Stewart Sanderson, Senior Private Client Director at 

, reminds us that looking at the whole picture is a must at this stage. 

Craft a business plan that aligns with your short-term and long-term goals, ensuring clarity on why you are selling and how the sale fits into your overall strategy.

Undertake legal and accounting due diligence, surplus cash extraction, and develop a business continuity plan, ensuring that both personal and business considerations are thoroughly addressed. As Ann-Marie Atkins, Managing Partner at 

, remarks: "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." 

4. Evaluate and Choose the Right Exit Strategy

Leaving the company you've built can be a difficult step to take, which is why Ann-Marie Atkins recommends taking time to consider the best exit strategy for you and your business, "whether it's an external exit, structured exit, or family succession."  

Explore various exit strategies, such as trade buyers, private equity, employee ownership trusts, management buyouts, or family succession, and align them with your post-exit plans.

5. Plan for the Unexpected and protect your business

Acknowledge that not everything may go as planned, and maintain open communication with advisers to discuss potential scenarios. "Don't be afraid to take your time... Education is key.", acknowledges Stewart Sanderson. 

Educate stakeholders, especially family members, about wealth management and involve them in smaller investment portfolios to build financial literacy.

Saisha Penny, Private Client Manager at Brooks Macdonald, reflects on the importance of business protection, particularly during selling. “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”. Everything you need to know about Business Protection is summarised in 

6. Strategic Planning Across Three Crucial Stages

There are three crucial stages to selling your business: Pre-sale, Exit, and Post-sale. Each requires careful consideration and strategic planning. Before initiating the sale, explore your options and formulate a detailed exit strategy during the pre-sale stage (more on how to prepare before selling 

, ensuring optimal value and involving the right advisers. Post-sale, focus on protecting yourself, managing funds, and maximising future opportunities.

7. Business Valuation: The Key to a Successful Sale

To get the best deal for your enterprise, business valuation is key. Engage your entire legal and accounting team to ensure a thorough business valuation. This step is crucial for attracting the right partner at the right price, aligning with your personal objectives and providing a strong foundation for the sale process. 

Often the best time to sell your business is when the financials are on the up, sales are booming, the team is strong and demand is high. It may be difficult for you personally to leave when your business is thriving, but it's also when it's most attractive to potential buyers. However, this is also an important factor to consider when deciding what to do with the proceedings. 

Conduct a thorough market analysis, considering the local economy, market conditions, industry trends, and whether the market favours buyers or sellers. Timing is critical, and selling when the business is at its peak can significantly impact the valuation.

9. Financial Planning for Post-Sale Proceeds

After selling your business, careful financial planning is essential. Rosie Bullard advises setting out a financial plan as to how the excess proceeds can be invested. Work with your financial adviser to develop a plan, ensuring a sustainable financial future and avoiding undesirable outcomes, especially in volatile market conditions.

10. Life After Selling: Crafting Your Future

The exit may be complete, but have you considered what comes next? Plan for your life after selling the business. Discuss your goals and timeframes with your financial adviser, assess your risk tolerance, and explore options such as investing, charity work, or taking a break. Consider creating charitable trusts for additional 

 and plan for a smooth transition of ownership to support employees and maintain customer relationships.

By following these five essential steps, you can navigate the complexities of selling your business with confidence. Remember, the sale is not just a financial transaction, it's the legacy of your entrepreneurial journey. Plan meticulously, consult your financial adviser early on, and set the stage for a successful business exit.

Compare Wealth Managers offers a free service to help you find a wealth manager. Simply click the orange "start comparing" button to get started.

Top 10 things to do whilst selling your business

 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

Saisha joined Brooks Macdonald in 2021 and enjoys building long-lasting relationships with individuals from a wide range of backgrounds. She is passionate about assisting clients to reach financial independence and then working with them to preserve and pass on wealth as appropriate.

Saisha holds Chartered Financial Planner status and has over five years’ experience in financial services.

Private Client Manager

Saisha Penny

Brooks Macdonald (BM) was originally formed with the desire to do things differently, an ethos that continues to influence the way they do business today. For over 30 years they have been helping people realise their ambitions and aiming to secure their future.

BM's wealth management service combines financial planning and investment management to help meet your goals. Their aim is to help you build, manage and protect your wealth, guiding you through the key financial decisions you will need to make during your lifetime.

BM is dedicated to the highest professional standards and understand how crucial it is to have trusted, expert guidance available when you need it. Located across the UK, their dedicated and experienced team focuses on making the complex simple, giving you clarity when it comes to your wealth. 

BM are always on hand to help and any initial discussion would always be free and without obligation.

Brooks Macdonald's financial planners will work with you to understand what’s important in your life. That may be providing for future generations, saving for a key milestone or investing for social good. They will discuss and agree the best way to achieve your goals by creating a financial plan based around you and your needs. Most importantly, they will guide you through the jargon and be there to support you and your family to make sure you remain on track as life changes. 

The best thing they can offer is confidence: the feeling that you don’t need to worry about your money because someone else is looking after it for you, which frees you to devote more time to focus on other things that matter most to you.

It’s never too late – or too early – to plan your financial future. What’s important is creating a financial plan that will support you for the long term.

Managing investments can be challenging and time-consuming, especially during volatile periods, but their team of investment managers have extensive experience to help cut through the complex. Brooks Macdonald will manage your investments to help you achieve your goals and will recommend a portfolio of different investments suited to your needs and risk appetite, designed to make the most of your assets.

Their investment managers will make investment decisions on your behalf. Using their centralised investment process, which ensures that each client’s investment portfolio leverages the broad and varied expertise of our asset allocation committee, investment committee and specialist sector research teams, BM can provide reassurance that your portfolio is constantly monitored by qualified professionals. 

Investing money makes it work harder than cash savings. Brooks Macdonald will keep you focused on your long-term plan and manage your investments with tax, budgets and personal circumstances in mind.

Brooks Macdonald

Stewart joined Brooks Macdonald in July 2020 to lead the UK Private Clients proposition. He is responsible for developing the UK Private Clients business by shaping and delivering the growth strategy. Additionally, he continues to advise several key clients primarily from sporting, corporate and entrepreneurial backgrounds with their broader wealth management needs.
Stewart has over 25 years’ experience of UK wealth management gained at institutions such as Lloyds Private Banking and Coutts & Co. Prior to joining Brooks Macdonald, Stewart was Managing Director at 7IM LLP, where he initially led their UK discretionary management business, before developing and leading their UK private clients business across London, Edinburgh and Jersey.
Stewart holds several industry qualifications and is a Fellow of the Chartered Institute for Securities & Investment (Chartered FCSI).


Senior Private Client Director & Head of UK Private Clients 

James joined Brooks Macdonald in 2022 to further develop and manage our professional connections and partnerships. Working closely with Stewart Sanderson, he also supports the broader UK Private Clients team.
Having relocated back to London from Geneva, James has spent over three years in wealth management with significant experience gained in both business development and broader financial planning for expatriates across Europe.
James is a member of the Chartered Institute of Securities and Investment (CISI) holding the Investment Advice Diploma.

Saisha Penny

Bio

Articles from author

Selling your business: Have you thought about business protection?

Top 10 things to do whilst selling your business

Selling your business: What to be aware of whilst selling

Start your journey to your
Financial well-being

FIND OUT MORE

LEGAL

CONTACT US

Saisha Penny

Bio

Articles from author

Selling your business: Have you thought about business protection?

Top 10 things to do whilst selling your business

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