Leap of Faith – The Fear of Losing what You Love
Do you remember watching the Indiana Jones films when they first came out? A bit of escapist nonsense to pass the time and loved by many to this day. In “The Last Crusade”, Indi is faced with a number of tests as he progresses in his quest for the Holy Grail and he comes to a deep chasm with no obvious way across. At this point he summons up his courage and takes a step of faith out into the unknown only to discover a cleverly disguised bridge under his feet.
Why does this come to mind? Well it seems to me that many business owners I speak to feel a little bit like Indiana Jones in this situation. They recognise they have come to the end of the path with their business and it is time for them to exit. But for many, acknowledging the situation and being entirely happy about it are two very different things.
In my experience, people who have built successful businesses are also deeply passionate about those businesses and the work they do. Everyone has good days and bad days, but deep down we love the work we do and so the thought of packing it all in stimulates some hard emotions.
But these hard decisions have to be made and so perhaps we need to frame the situation in another way. Here are two suggestions:
Not something lost, but something gained…
It is very easy, and natural, to think about what you are losing by selling the business – for many business owners the business has been somewhat all-consuming for many years. But what’s next? In one of our recent blogs, this was highlighted as one of the most important questions you need to answer before deciding to sell. As a business owner you understand the importance of setting goals and knowing what the next steps are – this is no different for your plans post-sale. Understanding this will put a different complexion on the sale from losing the thing you love, to gaining the opportunity to do something new.
Leaving behind a legacy that will grow…
Another way to look at this is from the perspective of the business itself. Many people equate building a business to raising children. You nurture it and grow it, trying to instil your values and personality until you have given it all you can give. Selling the business then is more like passing the business on to new owners who can continue to shape and develop it on the firm foundation you have created which is normally great news for your staff.
So if, like Indiana Jones, you find yourself at the end of the path, staring into what appears to be a deep chasm don’t despair. You are in safe hands with the Entrepreneurs Hub. We work with business owners at all stages; those who are ready to sell and those who are preparing, but also those who are just starting to consider their options.
So if this is a situation you are facing, or you just want to find out more. Why not attend one of our confidential webinars (click here for more details), or contact us for a free, no obligation chat and business review.
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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 around 12 to 18 months from initial preparation to completion, although some transactions may be quicker or take longer. The timeline depends on business readiness, buyer demand, deal complexity, due diligence and how quickly the legal terms can be agreed.
Preparing accurate financial information and organising key documents in advance can help reduce avoidable delays. Read our complete business sale timeline to understand 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, its future growth is clear and you are not under pressure to complete a sale. Buyers are generally more attracted to businesses with rising or stable profits, reliable financial information and credible opportunities for further growth.
Business owners are often in a stronger position 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 the owner
- There is a capable management team in place
- The owner has started preparing well in advance
Market conditions can also affect buyer appetite and valuation. Factors such as sector growth, access to finance and competition between buyers may support stronger deal activity, but preparation and business performance are usually more important than trying to identify a perfect month to sell.
Ultimately, the best time to sell is when both you and the business are ready, and the company can demonstrate sustainable performance and future value to potential buyers.
Use our Exit Readiness Tool to assess how prepared your business is, or read our guide on when to sell your business for further guidance.
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?
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…
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.