Contact – Selling a Business
Selling a business – Common FAQs answered
Thinking about selling your business?
Selling your business might be the most pivotal moment in your professional career, and our expert sales executives are here to guide you through the process. We’ve answered the most common questions about selling a business to help you get started.
Whether it’s exit planning, due diligence, transparent valuations, marketing, targeted buyer research and deal negotiation – we are proud to help with it all.
Simplify the journey, maximise your value and achieve the successful exit you deserve.
Preparing for the sale of a business
What documents do you need to sell a business?
When you sell a business, you are required to have certain legal documents to prove that you own the business and set out the terms of the sale. These documents include:
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Our process takes a few easy steps. If you are considering selling a business then click below to get started.
Do you need a business broker to sell a business?
While it isn’t a legal necessity to have a business broker sell your business, the process can be very lengthy and complicated without one. Business brokers can provide you with their knowledge and expertise every step of the way.
Business brokers can also help by providing contacts from a variety of different sectors which saves you time looking for solicitors, accountants and so on.
Head over to our guide on using a Business Broker for more information on how they could help you.
Do you need a solicitor when selling a business?
When you’re selling a business, there are many complicated legal procedures that arise that you may be unfamiliar with. This is where the help of a solicitor can be invaluable. There are a number of different benefits to using a solicitor, including:
The impact that a legal professional can have goes much further than what is listed above and there are many processes that are affected by a legal issue in one way or another.
Do you need an exit strategy before selling a business?
Yes, it is essential that you have an exit strategy before you sell your business. They help to plan for the probable and the improbable, providing you with a plan to exit your business with minimal fuss. It’s best to plan your exit strategy as soon as possible; allowing 3-5 years to start lining things up before actually putting the business up for sale is a good place to start.
Not having an exit plan means you will find yourself making things up as you go along, and you leave yourself open to a variety of risks.
How long does it take to sell a business?
How long it takes to sell a company really varies from business to business. We have had sales complete within days and some that have taken years to complete.
However, on average, we work to a timeframe of 6 – 12 months.
How do you know if the market is right for selling a business?
Market forecasting is a great way to know if the market is right for selling your business. Our business valuation calculator also factors in current market value, so you can use this (and input some of your own data) to help you understand what your business could be worth before deciding to sell.
How is a business valued for sale?
There are two methods that are used when valuing a business for sale:
You can use our EBITDA valuation calculator to start.
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Our services if you turnover more than £1M
There comes a point at which every business owner considers their exit from the business. Our Business Advisers offer a Director led approach throughout the sale journey.
When is the right time to sell your business?
Timing is everything when selling a business. Get the timing wrong and you may lose potential value when you sell. Get it right and you could be off into the sunset with your hard earned cash in the bank.
Are you ready to sell your business?
Most business owners who decide to sell their business, are simply not ready to sell. Making sure you have everything in check before you instruct a broker is critical.
Costs of selling a business
What tax do you pay when selling a business?
When you sell a business, it’s important to understand the tax you pay. This tax will comprise of:
Who pays Capital Gains Tax when selling a business?
You will pay Capital Gains Tax if you’re a self employed sole trader or in a business partnership and you make a profit (gain) when you sell all or part of a business asset.
Business assets you may need to pay tax on include:
Who pays legal fees when selling a business?
Both the buyer and the seller are responsible for paying legal fees when selling a business, since they will both need to hire their own solicitors.
Finding the right buyer for a business
Where do you list a business for sale?
You can sell your business through our business selling services. We can help to list your business on the most appropriate sites and to the right people, focusing on your key buyer targets.
You can use our free valuation calculator to get an instant business valuation in just 3 simple steps; this will help you to get started with the process, or allow you to decide if the timing is right.
How do you find legitimate buyers for a business?
Using business brokers, such as ourselves at Hilton Smythe, is a great way to find legitimate buyers for your business when planning to sell. We can look for prospective buyers who will have the right funds to purchase your business, as well as deal with enquiries professionally, set sensible purchase prices and finish on sensible sale prices.
Take a look at our guide on making your business more attractive to buyers for more tips on finding legitimate buyers.
What questions should a seller ask a buyer when selling a business?
There are a few questions you should consider asking a buyer when you’re selling a business. Listed below are the first 4 questions we always recommend asking:
What documents do you need to show a buyer of a business?
When you’re collecting information, you should try your best to organise information into categories, including everything the buyer will want to see. These document categories include:
The above is the bare minimum of what is expected in a due diligence process and some categories may change as the transaction progresses.
What happens once a business is sold?
If you continue to be involved with the business, you will retain any responsibilities and liabilities that are associated with the role.You will also have other tasks to complete, even if you choose to have no further involvement with the business. This could include informing staff and customers about the sale, informing HMRC and Companies House that you have sold the business and completing tax and VAT returns.
Find out the value of your business in under 60 seconds
Use our Business Valuation Calculator to get an instant business valuation in just 3 easy steps.
- 1Less than 1 minute to complete
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Why choose Hilton Smythe to sell your business
If you don't like the truth, we're probably not right for you. We will tell you how it really is and get the job done.
Access our database of tens of thousands of active, registered buyers.
We truly market your business for sale in all of the right places aimed at getting results.
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Reputation is driven by you
A great service was provided by Katie. She was very tenacious and on the case to ensure all partners, including myself, kept on going to completion!
Hilton Smythe provided a very professional service. Extremely patient with all the questions we had and extremely helpful.
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