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 by applying a multiple to its sustainable profit, often EBITDA or adjusted net profit. The appropriate multiple depends on factors including growth, recurring revenue, customer concentration, management strength, owner dependency, market conditions and buyer demand.
Determining what your business is worth involves more than applying a simple formula. Use our Business Valuation Calculator to obtain an initial valuation range, or read our simple business valuation guide to understand the factors buyers consider.
How long does it take to sell a business?
Selling a business in the UK typically takes 12 to 18 months from initial preparation to completion, although the formal sale process itself may take around 6 to 9 months once the business is ready to go to market. The exact timeframe depends on factors such as how prepared the business is, buyer demand, the complexity of the transaction, due diligence and how quickly legal and commercial terms can be agreed. Preparing financial information, contracts and other key documents in advance can help reduce delays and make the sale process more efficient. Read our complete business sale timeline to see what happens at each stage.
When is the best time to sell a business?
The best time to sell a business is usually when it is performing strongly, has clear growth potential and you are not under pressure to complete a deal. Buyers are typically more attracted to businesses with stable or rising profits, reliable financial information and credible opportunities for future growth.
You may be in a stronger position to sell when:
- Revenue and profits are growing or consistently strong.
- Financial records are accurate and up to date.
- Future growth opportunities can be clearly demonstrated.
- The business is not overly dependent on you.
- An experienced management team is in place.
- You have prepared for the sale well in advance.
Market conditions can also influence buyer appetite and valuation. Sector growth, access to finance and competition between buyers may support stronger deal activity. However, the performance and sale-readiness of your business are usually more important than trying to identify the perfect month or year to sell.
Ultimately, the right time to sell is when both you and your business are ready, and the company can demonstrate sustainable performance, manageable risk and future value to potential buyers.
Use our Exit Readiness Assessment to assess how prepared your business is.
Do I need an adviser to sell my business?
You are not legally required to use an adviser to sell your business, but many owners appoint an experienced M&A adviser to help manage the process. An adviser can prepare the business for sale, identify and approach suitable buyers confidentially, coordinate negotiations and support the transaction through due diligence.
The right adviser can also help create competitive tension, protect your time and reduce the risk of avoidable mistakes. Read our guide to choosing the right business sale adviser to understand the different types of support available.
How do I prepare my business for sale?
Preparing a business for sale involves strengthening its financial performance, reducing risk and making sure it can operate successfully without heavy reliance on the owner. Buyers will also expect accurate financial records, clear contracts, organised documentation and evidence of future growth.
Preparation should ideally begin well before approaching the market, giving you time to address weaknesses that could affect value or delay the transaction. Use our Exit Readiness Tool to assess how prepared your business currently is.
How is confidentiality protected during a sale?
Confidentiality is protected through controlled information sharing, anonymised buyer approaches and non-disclosure agreements. Potential buyers usually receive limited information at the start of the process and must sign an NDA before commercially sensitive details are released.
Prospective buyers should be assessed before receiving further information, with documents shared gradually according to their level of interest and credibility. A well-managed process also allows the business owner to retain oversight of who is approached and what information is disclosed.
What documents do I need to sell my business?
The documents needed to sell a business commonly include financial accounts, management information, forecasts, customer and supplier contracts, employment records, tax information and evidence of intellectual property ownership.
Buyers may also request details of property, insurance, legal disputes, regulatory matters and company ownership. Organising this information before due diligence begins can reduce delays and help maintain buyer confidence. Our Business Sale Due Diligence Checklist explains the main information buyers are likely to request.
What’s the quickest way to sell a company?
The quickest route is usually a sale to a buyer who already knows your business, such as a competitor, a supplier or your management team, or to a buyer with funds ready. Even then, legal work and due diligence normally take two to three months. Speed usually costs money: with only one buyer at the table there is no competition on price. If timing matters, tell your adviser at the start so the process can be built around it.
Can I sell my business online?
You can list a business on an online marketplace, and for very small businesses this can work. For businesses with a value above around £2m, public listings carry risks: staff, customers and competitors may spot the sale, and the buyers who respond are rarely the best fit. A managed process that approaches selected buyers confidentially usually produces stronger offers and protects the business while it is for sale.
How can I increase the value of my business before selling?
You may be able to increase the value of your business by improving sustainable profits, developing recurring revenue and reducing reliance on individual customers or the owner. Buyers also value capable management teams, reliable financial reporting, scalable operations and clear opportunities for future growth.
The earlier you identify the factors affecting value, the more time you have to make meaningful improvements. Use our Business Valuation Calculator for an initial indication of value and our Exit Readiness Tool to identify areas that may need attention.