10 Tips for Selling a Business from Business Owners who Sold

For most business owners, selling a company is a once-in-a-lifetime milestone. It’s not just a financial transaction; it marks the culmination of years, often decades, of dedication, sacrifice, and hard work. At Entrepreneurs Hub, we’ve advised and supported countless business owners through this complex journey. If you’re planning to sell your company in the next 1-3 years, it pays to learn from those who have walked the path before you.

In this article, we share 10 practical and powerful tips for selling a business, gleaned directly from the experiences of business owners who have successfully exited their businesses.

Whether you’re considering succession, retirement, or simply exploring your options, these lessons will help you navigate your exit more confidently and profitably.

Tip 1. Sell When You Don’t Have To

One of the most common regrets we hear from business owners is: “I wish I’d sold earlier.” Too many business owners wait until they have to sell – due to burnout, personal circumstances, or market changes. Unfortunately, this is when leverage diminishes, and business valuations may decline.

Your business is most attractive to potential buyers when it’s thriving, growing, and not under pressure. External threats such as changing regulations, new competitors, loss of key staff, or declining profit margins can all quickly erode value.

The best time to sell is when your business has momentum, a solid customer base, and you’re under no obligation to exit. At this stage, you have more options, can negotiate better terms, and are more likely to attract credible buyers.

“For us it came down to trust. It took 25 years to build a very successful business in our sector, but the biggest decision we ever made was the appointment of Entrepreneurs Hub. If we were to do it all again, it would be with the Entrepreneurs Hub team.” –  Gary Rowe, Pallet Plus

Tip 2. Get Advice Early … Really Early

Many business owners underestimate the length and complexity of the sales process. Ideally, strategic preparation should begin years in advance, not just months before the sale.

Consider what factors drive or detract from the value of your business. How can you reduce perceived risks for potential buyers? Are there elements of your business that could delay or kill a deal?

Obtaining a professional Exit Health Check with a reputable M&A adviser can provide valuable insights. This service covers everything from managing confidential information and preparing financials to streamlining operations. An early diagnostic can help ensure you’re not caught off guard during due diligence.

It’s not only important to know your business’s worth; it’s also essential to present it in the best possible light, aligning with buyer expectations.

Tip 3. Don’t Take Your Eye Off the Ball

Even after you start the selling process, it’s essential to continue operating your business as if you were not selling. Factors such as revenue growth, profitability, staff morale, and customer satisfaction all influence the final valuation.

Too often, owners become distracted during this time, which can lead to a decline in performance, giving buyers reason to renegotiate or walk away. To avoid this, delegate the sales process to trusted advisers and appoint a key internal stakeholder to support them.

With the right team managing the transaction, you can focus on what you do best: running a successful business.

Tip 4. Be Smart About Deal Structure

While a headline sale price may look attractive, the structure of the deal matters just as much. In many deals, part of the payment is deferred, or linked to performance targets in what’s known as an “earn-out.”

Earn-outs aren’t necessarily a red flag. In fact, they can be beneficial if your business continues to perform well post-sale. However, you need to be comfortable with the terms and confident that the buyer will support the business during that phase.

A skilled negotiator, like Entrepreneurs Hub, alongside an experienced corporate lawyer can ensure the deal structure is fair and weighted in your interest, with maximum value delivered on completion.

Tip 5. Get Multiple Business Valuations

Don’t rely on a single opinion of value. Some brokers may inflate the estimates simply to win your business. This is a dangerous trap: setting your sights too high can deter credible buyers, waste time, and ultimately lead to disappointment.

Instead, seek an expert independent business valuation. Choose an advisor who will consider factors such as risk, future growth potential, customer concentration, EBITDA performance, and broader market conditions.

Buyers ultimately pay for opportunity and sustainability. An honest, evidence-based valuation sets the stage for smoother negotiations.

For a more in-depth understanding of how valuations work, read our guide on “how to value a business”

Tip 6. Selling a Business is Emotionally Challenging

Even the most level-headed entrepreneurs are often surprised by how emotional selling their business can be. After all, this is likely your life’s work, a company you’ve nurtured through recessions, staff turnover, and countless late nights.

Negotiations can feel personal, due diligence can be invasive and letting go can feel like a significant loss.

Having a supportive and experienced advisory team around you can make a world of difference. Be open and honest with them from the outset. Discuss any potential red flags, legacy concerns, or staff issues. This transparency will help them protect your interests and manage the deal more efficiently.

“Choosing the right advisors to help me with the sale process was key from the outset… Entrepreneurs Hub provided a skilled team with a comprehensive approach, but more importantly, they were empathetic and trustworthy partners… buyers also commented on the high level of professionalism.” – Nadim Ednan‑Laperouse OBE, WOW Toys

Tip 7. No Business is Perfect – But Preparation Pays

Every business has its challenges. Don’t let these deter you from preparing it for sale.

Take the time to streamline outdated processes, ensure financial reporting is accurate, and document key systems and customer relationships. Aim to reduce risk wherever possible – this includes addressing over-reliance on a single client or supplier, as well as reviewing employment contracts or leases.

Think of it like selling a house: you wouldn’t sell without tidying the garden and fixing a leaky tap. The same goes for your business. For further practical guidance, see our article. “Preparations for Sale that Truly Make a Difference”

Tip 8. Work with an Adviser Who Works For You

Choosing the right adviser is crucial. A skilled M&A adviser doesn’t simply list your business; they ensure confidentiality, identify and evaluate potential buyers, and guide you through every twist and turn.

Your adviser should bring multiple offers to the table, create a competitive atmosphere, and secure the best deal terms – not just the highest price. Their success should be aligned with yours, meaning minimal upfront fees and remuneration based on success.

Most importantly, they should understand your goals, your legacy, and what a successful outcome looks like for you.

“Entrepreneurs Hub team were fantastic. They put in a tremendous amount of effort throughout the process. We could never have sold the business without their help. Even the company that bought us … complemented us on how professional, organised, and easy to deal with our advisers were … which made the whole process very smooth.” – Steve Fearn, Silex Ltd

Tip 9. Plan for Tax Early

Selling your business is likely to be one of the largest financial events of your life. A poorly structured deal could mean losing a significant portion of your proceeds to taxes.

That’s why involving a specialist tax adviser early is non-negotiable.

They can help you structure the sale in a way that minimises your tax liabilities, plan for capital gains tax, and ensure your tax return is accurate and compliant.

Consider the impact of Business Asset Disposal Relief (formerly known as Entrepreneurs’ Relief). It’s also important to understand the implications for shareholders and to ensure that all shareholders are aligned before going to market.

Tip 10. A Good Corporate Lawyer is Worth Their Weight in Gold

Your lawyer plays a crucial role beyond just ensuring that all the details are correct. They are there to protect your interests, anticipate potential risks, and ensure that the deal structure is sound.

When selecting a corporate lawyer, it’s essential to choose one with extensive experience in mergers and acquisitions (M&A), rather than just general commercial law. An experienced lawyer will have a deep understanding of deal dynamics, confidentiality agreements, warranties, and how to safeguard your position during negotiations and post-sale.

Additionally, fee structures can often be aligned with the completion of the deal, ensuring that your lawyer’s incentives are in line with your own interests.

In Conclusion: It Pays to Prepare

Selling a business is a high-stakes venture with the potential for significant rewards. It requires careful planning, preparation, the right advisory team, and a solid understanding of your personal and financial goals.

By following these 10 tips for selling a business, gathered from genuine business owners, you can enter the exit process with confidence, clarity, and control.

At Entrepreneurs Hub, we assist business owners like you at every stage – from exit planning and business valuations to finding a buyer and negotiating the deal. If you are considering a sale within the next 1 to 3 years, now is the ideal time to start planning.

Need Help Preparing for Exit?

Ready to explore your next chapter? Book a confidential, no-obligation conversation with one of our experienced advisers to understand your options and start building your ideal exit strategy. Contact us.