Selling your business is a monumental milestone. It’s a culmination of years of hard work, dedication, and, often, personal sacrifice. Naturally, as a business owner, you want to secure the best possible price when selling your company. Yet, many owners unknowingly leave significant value on the table.
The Expert Perspective
As experienced M&A advisors, we hear all too often about seasoned business owners taking deals that are valued far below their potential market value, with deferred payments spread over as many as five years. In some cases, only minimal upfront payments were made. The common theme is lack of professional representation on the part of the seller. Many business owners are caught out by unexpected offers, often without an exit plan in place, and are swept along with seemingly attractive deals.
Why Professional Representation Matters
In the world of deal-making, knowledge is a critical advantage. When corporate finance firms or M&A advisors are not involved in transactions, the balance of power shifts significantly toward the buyer. Sellers, even those with highly profitable businesses, often accept less favourable terms due to the absence of expert guidance on valuation, deal structuring, and negotiation.
Selling a business is a complex process that requires professional expertise. Engaging experienced M&A advisors not only helps maximise the sale price but also ensures that the deal is structured with terms that align with the seller’s goals and financial security.
Avoid the DIY Trap
If you’re a business owner contemplating a sale, consider this: would you manage your business’s tax strategy without an accountant or navigate a lawsuit without a lawyer? Selling a business is a complex process that requires expertise in:
- Valuation Methodologies – ensuring your business is priced correctly is critical.
- Negotiation – an experienced advisor can protect your interests and ensure the deal terms align with your goals.
- Deal Structuring – deferred payments, earnouts, and warranties must be carefully negotiated to protect your financial future.
Succession Planning
Selling your business isn’t just about getting the best price; it’s also about securing your legacy and safeguarding your family’s future. Recent tax policy changes are poised to make succession planning even more critical.
By April 2026, proposed inheritance tax (IHT) changes could subject shares and assets in privately owned businesses to IHT over a £1m threshold. For many business owners, this could mean a significant tax burden for their beneficiaries.
The Solution – A Proactive, Expert-Led Approach
Whether you’re planning to sell your business now or in the future, the steps to protect your legacy are clear:
- Get a Business Valuation: Partner with trusted advisors who understand your business and its value drivers. Avoid relying on generic benchmarks or overly simplistic methods.
- Develop a Succession Plan: Work with M&A advisors, accountants, and wealth planners to create a holistic strategy that addresses both personal and business needs.
- Engage Professional Deal Support: Selling your business is likely a once-in-a-lifetime event. A seasoned advisor ensures you’re prepared, informed, and positioned for success.
Specialist Advice
The stakes in selling your business are too high to leave to chance. With the right advisors by your side, you can navigate the complexities of valuation, deal structuring, and negotiation, ensuring a smooth process and a deal that reflects the true worth of your enterprise.
Ready to take the first step? Let’s talk about how we can help you unlock the full value of your business and plan for a successful future. Contact Geoff Pinder (07717 874357) for a confidential discussion and find out more about our Business Exit Review.