Selling Your Business: How to Get It Right and Get Paid
So, you’re thinking of selling your business. Maybe it’s time for a new adventure. Maybe you're just plain knackered. Or maybe you’ve realised that true freedom isn’t working 70 hours a week for yourself — it’s a healthy bank account and time to enjoy it.
Whatever your reason, selling your business can be the most rewarding decision you ever make… or the most painful one if you wing it. Let’s make sure it’s the former.
Why People Sell — And Why It Matters
Some people sell because they’re retiring. Others because they’ve had enough of the grind. Some want to cash in while the business is booming. The reason matters — because it affects the timing, the structure of the deal, and how you position the sale.
If you're selling from a position of strength — with strong cash flow, recurring revenue, and clean books — you'll get a premium. If you’re selling out of desperation, buyers will smell it and chip away at the price like hungry pigeons on a sandwich.
Step 1: Get Your House in Order
Think of your business like a house you're selling. You wouldn’t try to flog it with cracks in the walls, a leaky roof, and a jungle in the back garden. So:
Sort out your financials. Clean, accurate, up-to-date accounts are your golden ticket.
Document your systems. Show the buyer they’re buying a machine, not a mess.
Get rid of dead weight. Unprofitable products, bad clients, legacy stock — cut it.
Boost profitability. Buyers pay for profit, not potential.
Step 2: Know What It’s Worth (And Don’t Guess)
Your business is worth what someone’s willing to pay for it — and that’s usually a multiple of profit (EBITDA, for the nerds) plus any assets. But that multiple can swing wildly depending on:
Your industry
Your customer base
How dependent the business is on you (bad sign)
Recurring vs one-off revenue
Growth potential
Tip: Get a proper valuation. A realistic one, not something your mate down the pub came up with after a few pints.
Private equity (if you’re a solid, scalable outfit)
MBO (your management team buys you out — handy if they’ve got the stones and the cash)
Individual buyers (usually for smaller businesses)
Each buyer type has pros and cons — and different deal structures. You might get all cash, or you might get a mix of upfront cash, earn-out, and vendor financing (aka “you become the bank”).
Step 4: Market the Business Like a Pro
Just like selling a product, your business needs a sales pitch. That’s where a good Information Memorandum (IM) comes in — a slick, detailed document that tells your story, shows the numbers, and gets buyers interested without giving away the crown jewels.
Unless you're selling to someone you know, you’ll need a broker or advisor who knows their stuff — someone who won’t just list your business and pray.
Step 5: Handle Due Diligence Without Losing Your Mind
Once a buyer bites, expect the full cavity search. They’ll look at:
Financials
Legal contracts
Employees
Customers
Intellectual property
Compliance
Prepare in advance. The better your prep, the smoother the process, and the less chance of the deal falling apart.
Step 6: Get the Deal Right
This is where lawyers and accountants earn their keep. Things like:
Share sale vs asset sale
Tax implications
Warranties and indemnities
Earn-outs and performance clauses
Non-competes
And don’t forget: cash is king. Fancy structures are fine, but make sure you’re not relying on promises that never materialise.
Step 7: Exit Clean, Proud and Paid
A successful exit isn’t just about the cheque — it’s about peace of mind. You want to walk away knowing the business is in good hands, your team is taken care of, and you’re not tied into three years of post-sale nonsense unless you're really getting paid for it.
Final Thought: Start Early
Most people think about selling their business way too late. The best exits are planned years in advance. If you want top dollar and minimal stress, start preparing before you actually want out.
And if you don’t know where to begin? That’s where we come in.
👋 Ready to explore selling your business?
Whether you're 6 months out or 6 years away, we’ll help you do it right.
📩 Drop us a line at info@businesssellingexperts.com
