Ready to Retire but No Successor? Advice for Selling a Business
Entrepreneurs Hub regularly gives advice for selling a business to those who are getting ready to retire. There are numerous exits options at this stage in their lives and careers but passing the business onto a family successor is not always one of them.
Some people do not have any children to pass the company down to, whilst others do but their children are simply not keen to take on the family business. Other may lack the skills, time, interest or passion – or maybe the business isn’t based near to where they live.
If you’re selling a business and you don’t have a successor, what should you do?
Don’t take it personally
You’ve put so much into your business, so if you have kids it’s only natural that you’d want your own flesh and blood to continue to build on – and be rewarded for – all the hard work you’ve invested. However, try not to be offended if your children decide they just don’t want to take on the mantle. Feeling angry and hurt could cloud your decision-making abilities at a time when clarity is paramount. Stay neutral.
Malcolm Murray, Director of Entrepreneur’s Hub, empathises:
“I brought my son in to one of the businesses I was a shareholder in, assuming that was what he wanted to do. Three months later he said, “Dad this is not me I want to do something else,” so I sent him off with my blessing. He followed his passion and now has a great job in Sports Management.”
Evaluate your options early on
Even if your retirement is a few years away, don’t wait until it’s nearly time to step back from the business before you consider your choices for exit. Forward planning is the key to success at every stage in the life of a business and the sale is no exception. At an early stage, take time to ‘zoom in’ on your business sale objectives – for today and tomorrow.
Marketing and selling your business to the right buyer is, for most, the best option financially. You might also want to consider a Management Buyout (MBO), a form of acquisition where a company’s existing managers acquire a large part or all of the company from either the parent company or from the private owners.
Alternatively, some businesses are sold via a Buy-In Management Buyout (BIMBO); a form of a leveraged buyout that occurs when existing management — along with outside managers — decides to buy out a company. The existing management represents the buyout portion while the outside managers represent the buy-in portion.
Another good reason to start planning for exit early on? If your business is heavily dependent on you and your knowledge and relationships, the new owner may want you to be around for a while to help them throughout the transition period. Many business owners feel they owe this to their staff too – who will reward such consideration with continuity of effort.
Always seek expert guidance
Our top piece of advice for selling a business? Don’t do it solo! Meet with a corporate finance adviser like Entrepreneurs Hub who’ll have the skills and experience to help you navigate the sometimes rocky terrain of selling a business.
From assessing how ‘exit-ready’ your business is (and how to get it there), preparing documents and plans necessary to sell your business efficiently, marketing your business for sale, finding the right buyer and negotiating the final deal – we’ve done it all before so we can help you avoid the common pitfalls and retire with the financial rewards, peace of mind and satisfaction of a successful sale.
Contact Us in confidence and arrange a no-obligation free consultation, where we can offer you advice for selling a business and help you achieve maximum value. Call 0845 067 8678 or email info@entrepreneurshub.co.uk
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FAQs – Selling Your Company
How do I sell my business in the UK?
Selling a business in the UK typically involves preparing financial information, obtaining a valuation, identifying suitable buyers and negotiating the terms of a sale. Most owners work with an M&A adviser to manage the process confidentially, approach qualified buyers and maximise the value achieved.
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
What is my business worth?
A business is typically valued using a multiple of its profit, usually EBITDA or adjusted net profit. The multiple depends on factors such as growth potential, recurring revenue, customer diversification and management strength. Professional valuation provides a realistic price range and helps position the business effectively for buyers.
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell a business?
Selling a business in the UK typically takes between six and nine months from preparation to completion. The timeline depends on business readiness, buyer demand and the complexity of due diligence. Early preparation and clear financial reporting can help shorten the process.
When is the best time to sell a business?
The best time to sell a business is when it is performing strongly, growth prospects are clear and you are not under pressure to sell.
Business owners often achieve the strongest outcomes when:
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Profits and revenue are growing
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Financial records are clear and well prepared
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There is visible future growth for buyers
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The owner has planned the sale 12–18 months in advance
Market conditions can also influence valuations. Strong buyer demand, sector growth and favourable economic conditions can increase acquisition activity, but a well-prepared business can attract interest in most markets.
Deal activity often increases during spring and autumn, although transactions complete throughout the year. In practice, preparation and business performance usually matter more than trying to perfectly time the market.
Ultimately, the best time to sell is when both the business and the owner are ready, with the company positioned to demonstrate strong value to potential buyers.
Do I need an adviser to sell my business?
Many business owners choose to work with an M&A adviser to manage the sale process. Advisers help value the business, approach qualified buyers confidentially and negotiate terms. This structured approach can increase the likelihood of achieving a higher value and a successful transaction.
How is confidentiality protected during a sale?
Confidentiality is protected through controlled information sharing, anonymous buyer approaches and strict non-disclosure agreements. Potential buyers receive limited information initially and must sign an NDA before any sensitive details are released. Business owners approve prospective buyers and maintain visibility over all documentation throughout the process.
How do I value my business before selling?
Valuing a business before selling usually involves analysing profitability, identifying valuation multiples and assessing key value drivers such as recurring revenue and customer concentration.
What’s the quickest way to sell a company?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
What’s the best way to sell a business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…