Selling your business is one of the most important financial decisions you’ll make. Whether you plan to retire, pursue another opportunity, or realise the value you have built over time, successful exit planning requires careful preparation — both commercially and for tax.
A well-executed business sale can deliver financial security and reward years of effort. However, poor planning can reduce sale value, create unexpected tax costs, or delay completion.
Planning early — ideally well before putting your business on the market — gives you time to:
Improve profitability and attractiveness
Resolve key operational issues
Strengthen management and financial reporting
Plan for tax efficiently
Buyers expect clear, accurate, and up-to-date financial accounts. Well-prepared accounts demonstrate the health and performance of your business and support realistic valuation.
A business that runs independently of the owner — with solid processes and trained staff — is more attractive and can command a higher price.
Ensure key contracts, leases, intellectual property rights, and employment terms are in good order. Resolving legal uncertainties early avoids last-minute issues during due diligence.
A strong management team reassures buyers that the business will continue to perform after your exit.
Determining the right valuation and route to market is crucial.
Valuation typically considers:
Historical and projected profits
Asset values
Market position and growth prospects
Industry multiples and comparable sales
A professional valuation provides a realistic foundation for negotiation.
You might sell:
To a trade purchaser
To a financial buyer (e.g., private equity)
To key employees via management buy-out
Through a structured earn-out or deferred payment
Each option has different implications for price, tax, cash-flow timing, and risk.
Tax on the sale of a business can be significant if not planned in advance. Key tax issues include:
If you are an individual selling assets or shares, CGT may apply to the gain on disposal. Planning can help reduce exposure and make use of reliefs.
Qualifying business disposals may benefit from reduced CGT rates under Business Asset Disposal Relief (formerly Entrepreneurs’ Relief). Conditions must be met, including ownership criteria and qualifying trading activity.
Where assets are gifted or sold at undervalue, holdover relief may defer the charge on the gain.
Tax treatment varies depending on whether you sell shares or business assets, so early planning is essential.
Buyers will conduct a thorough review of your business before completing a purchase. This usually includes examination of:
Financial accounts and tax filings
Contracts and legal documentation
Intellectual property and compliance
Customer and supplier arrangements
Employee terms and pensions
Being prepared for due diligence reduces the risk of unexpected issues and strengthens your negotiating position.
The sales contract should cover:
Purchase price and payment terms
Warranties and indemnities
Post-completion obligations
Treatment of liabilities
Structuring the sale effectively — including timing, payment methods, and warranties — can protect you and improve net proceeds.
Many buyers require support during the transition period, which might include:
Consulting roles
Handover to new management
Knowledge transfer with key personnel
Planning how you will support this transition helps ensure continuity and satisfies buyer expectations.
Selling your business involves strategic, financial, and tax planning. Applegrow supports you throughout the sale lifecycle:
We can help with:
Business valuation and readiness reviews
Tax planning to maximise after-tax proceeds
Structuring the sale and advising on payment terms
Preparing for due diligence
Liaising with legal and tax professionals
Our goal is to help you achieve the best outcome for you and your business.
Contact Applegrow Financial Advisors today for tailored advice and a strategic sale plan that protects value and optimises your tax position.
