Selling Your Business: Why Going it Alone Often Costs More Than it Saves

For many business owners, selling a company is a once-in-a-lifetime decision. It represents years, often decades, of work, risk, and reinvestment. And yet, when the time comes, a surprising number consider handling the sale themselves ^[1].

On the surface, the logic is understandable. You know the business better than anyone, you may already have industry contacts, and avoiding advisory fees can feel like a sensible way to preserve value.

In practice, however, the difference between a self-managed sale and a professionally run process is rarely marginal. More often, it is decisive.

As Henry Campbell-Jones, Managing Director of Hornblower Business Brokers, explains, “business owners will underestimate the amount of effort it will take to go through the sale process and the resources that they’ll need.”

More Than Just Finding a Buyer

One of the most common misconceptions is that selling a business is simply a matter of identifying a buyer and agreeing a price. In reality, the process is far more involved.

It begins with how the business is presented to the market. Preparing an information memorandum requires not just assembling financials, but carefully structuring a narrative, what to include, what to hold back, and when to disclose sensitive details ^[2]. Managing this balance is critical, particularly where confidentiality is concerned.

“Confidentiality is key,” Campbell-Jones notes, pointing out that using an intermediary allows a business to be marketed without revealing its identity prematurely.

From there, attention turns to identifying and approaching potential buyers. This is often where owner-led sales begin to narrow. Sellers tend to focus on a small number of familiar names, perhaps a competitor or an industry contact, rather than stepping back to consider the wider market.

The result is a process that lacks breadth.

“And really what we find,” he says, “is that [owners] are limited in their numbers and… focused on maybe two or three parties.”

At the same time, the demands of running the business continue. Responding quickly to enquiries, maintaining momentum, and progressing discussions all require time and focus, something that can be difficult to sustain alongside day-to-day operations.

Opening the Market

This is where the role of a broker begins to change the shape of the process.

Rather than relying on a handful of known buyers, a structured approach opens the business to a much wider audience. And that audience is often broader than many owners initially expect ^[3].

“There are quite a wide range of buyers out there,” Campbell-Jones explains, from trade buyers and competitors to private equity-backed businesses and investment firms actively seeking acquisitions.

Access to these different buyer groups is not simply about increasing visibility, it fundamentally alters the dynamics of a sale. Instead of negotiating with one or two interested parties, multiple buyers can be engaged at the same time and brought through the process in parallel.

As Campbell-Jones puts it, “it brings quite a number of buyers to the process at the same time… so that they can make offers at the same time, and you can choose the best overall offer and deal structure.”

Having options in front of you at the same point in time creates clarity. It also creates leverage.

The Role of Competitive Tension

When several buyers are progressing simultaneously, what emerges is known as competitive tension.

“Competitive tension is when you have several buyers in the process at the same time, all looking to make offers,” Campbell-Jones explains.

In practical terms, this shifts behaviour. Buyers are less likely to delay or test the boundaries with lower offers when they know others are involved . Instead, they are encouraged to put forward their strongest position earlier in the process.

At the same time, the presence of other bidders provides reassurance. As Campbell-Jones notes, “if they know there are other bidders in the ring, it gives them confidence that… it is an attractive acquisition to be making.”

There is, however, a balance to strike. A process that feels overly aggressive can deter buyers, while one that lacks competition can reduce urgency. Managed well, competitive tension becomes one of the key drivers of both value and deal quality ^[4].

Looking Beyond the Obvious Buyer

Another important consideration is that the most suitable buyer is not always the most obvious one.

While many owners can identify a shortlist of potential acquirers, a full market process often reveals buyers they would not have considered. These may be businesses operating in adjacent markets, firms looking to expand geographically, or acquisitive groups backed by private equity ^[5].

“In most cases,” Campbell-Jones explains, “going out to the full market will result in bringing in a buyer that is different to whom the seller might have thought.”

This is not just a matter of variety. Different buyers bring different motivations, and those motivations often shape both valuation and deal structure ^[6].

“And therefore,” he adds, “you might end up selling to a firm that you just wouldn’t have thought of in the first case.”

Keeping an open mind is essential. The objective is not simply to sell, but to find the buyer for whom the business represents the greatest strategic value.

Choosing the Right Broker

If the process itself plays such a central role in determining the outcome, then choosing the right broker becomes a critical decision.

This is where many owners focus too heavily on valuation.

“A lot is made of valuation,” says Campbell-Jones, but he cautions sellers to be “wary of selecting a broker on the basis of the highest valuation that’s quoted.”

In reality, value is determined by the market once buyers are engaged, not by initial estimates. A more meaningful assessment looks at how the sale will be executed, how the business will be positioned, which buyers will be approached, and who will be managing the process.

“It’s quite an involved process selling a business,” he notes, “so you do need to make sure that you’re comfortable working with your deal leader.”

Experience, process, and alignment often matter far more than headline numbers at the outset.

A Process That Shapes the Outcome

Selling a business is not simply a transaction. It is a structured process that, when managed effectively, creates options, builds competition, and ultimately leads to better outcomes.

Handling the sale independently may appear efficient, but it often limits reach and reduces leverage at critical points in the process.

By contrast, a broader, professionally managed approach opens the market and allows sellers to make decisions from a position of strength.

As Campbell-Jones summarises, “we search the market for buyers, we negotiate on your behalf and we get you the best deal… enabling you to realise the full value for your business.”

And in a decision of this scale, that difference can be significant.