Preparing your business for sale: the 12-month checklist

Selling a UK business well takes 12 months of preparation before you go to market. The work falls into four areas: financial cleanup, operational independence from the founder, customer and contract de-risking, and a clear growth narrative. Done well, the multiple lifts by 20-50%. Done poorly, the deal collapses or completes at a steep discount.

Earn-out structures explained: how to negotiate one without regret

An earn-out is the deferred portion of a UK M&A purchase price, payable to the seller(s) only if the business hits specified financial targets over 2-4 years after completion. Earn-outs typically cover 20-40% of total consideration. The most negotiated terms: the metric (revenue vs EBITDA vs gross profit), the targets, the seller's control during the earn-out period, and what happens to the metric if the buyer changes the business.

The emotional side of selling your business

Selling a UK business is one of the most emotionally significant events of a founder's life. The intellectual side (financials, deal structure, legal) gets the attention, but the emotional side — identity, purpose, relationships, regret — is what catches most owners unprepared. Plan for it: identify what you'll do next, communicate honestly with your team, and accept that the first 12 months post-sale are often the hardest.

Working with brokers vs direct acquirers

When selling a UK SME, you can engage a corporate finance adviser (a "broker") to run a structured sale process, or you can negotiate directly with one or more identified acquirers. Brokers maximise competitive tension and price. Direct deals are faster and less disruptive but typically result in a lower price.

After you sell: the first 12 months

The first 12 months after selling a UK business are typically harder than the founder expects. Handle four things well: the transition period commitments, the team relationship under new ownership, your own next chapter, and the financial admin (tax, structuring, family communications). Most sellers report months 3-9 as the hardest — between the immediate post-deal relief and the emergence of what comes next.