Negotiating the Best Deal for your Business – 3 Reasons why you Should Engage a Corporate Finance Company
Painting the garden fence, putting up shelves, maintaining a classic car – there are plenty of occasions when it’s fine to DIY but negotiating the best deal when selling your business is not one of them. Although it may appear to be an easy task on the face of it, ask anyone who’s sold a business and they’ll tell you it can be a minefield riddled with potential mistakes, so you should engage a corporate finance company.
Achieving maximum value in the sale of your business requires deft navigation of a complicated process and very careful negotiation skills that can only be refined with the benefit of experience.
Hindsight is 20/20, as they say. So, if you’ve decided it’s the right time to sell your business and you want to negotiate the best exit deal, get the guidance of a successful corporate finance company who’s been there, done that , got the t-shirt…and probably sold the t-shirt! Here’s 3 reasons why…
1. Perspective
Chances are, you’ve been running your business for some time and it plays a major part in your life. More than one of our clients has described selling their business as being like a child that they’ve nurtured over time – but now they’ve grown up and it’s time to step back and let go. For many business owners, the emotional fog around selling a business can obscure their view of the company’s strengths and weaknesses and it certainly hinders effective negotiation.
In contrast, an external consultant from a corporate finance company such as Entrepreneurs Hub has less emotional investment and can provide the clarity that’s so vital to an honest evaluation of your business. The insights this provides will help you work together to get your business ready to sell and market it to the right buyers. Your deal lead adviser might even reveal that your business is worth more than you realise. Ultimately, the outside perspective and emotional detachment of your deal lead adviser will enable them to take a stronger, more impartial stance throughout the negotiation process – one that will facilitate a sale for maximum value.
2. Connections
You’re well-associated in your industry but it doesn’t compare to the broad scope connections that an expert team at a corporate finance company can offer you. For example, we have a vast database with worldwide reach to identify and target potential buyers.
Corporate finance companies like ours can supply you with access to multiple acquirers, enhancing interest in your business and encouraging healthy competition for the sale – which, combined with an expert craft in negotiation, will help get you get a better price. Not only that, we can arrange and moderate at meetings with acquirers, armed with foresight into which questions they’re likely to ask and what they’ll expect to see in terms of documents. You’ll also benefit from connection to a tried and trusted selection of specialists in intellectual property, tax, legal, contracts and litigation.
3. Focus
Selling a business isn’t an overnight process – you’ll need to play the long game and preparation is the key to success. This involves detailed pre-diagnostics to examine the current position of your business; looking at your business model and structure, strategy and financials, sales and marketing, key members of staff, shareholder objectives, IP, compliance, and contracts.
Experts in corporate finance will help you assimilate and apply this information to set clear objectives for sale and design an appropriate exit strategy. The implementation of this strategy is immersive and time-consuming, posing a huge challenge when you’re still trying to juggle the day to day running of a business alongside that. Leaving it to the experts allows you to focus on the business first and foremost, so the pre-sale and negotiation process is far less likely to become derailed by time and resource constraints. Your designated project team can focus 100% of their energy on selling your business, without the distractions you might face.
Want to sell your business – the right way? Entrepreneurs Hub is an approachable and experienced corporate finance company, here to help you prepare your business for sale and negotiate the best deal so that you can realise your future aspirations. Contact us in confidence to find out more about how to sell a company for 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 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.