An owner's guide to selling a business.
Selling your business is one of the most significant financial and personal decisions you will make in your lifetime. The right adviser makes a substantial difference to the outcome. This guide explains what the process involves, what determines your company's value, and how to avoid the mistakes that cost sellers time and money. If you have questions, we are always happy to talk.
1. Is now the right time to sell?
There is no perfect time. That said, certain factors can significantly improve the likelihood of a successful sale. Starting the conversation one to two years before your intended exit provides time to enhance business value, strengthen financial reporting, and position the company for sale from a position of strength rather than urgency.
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Your business is profitable and the finances are in good order
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At least 2–3 years of consistent performance to show to buyers
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Your reason for selling is clear and credible — buyers will want to know why you are selling
The fundamentals of business valuation
Most SME valuations are based on an EBITDA multiple. Across the European SME market, valuation multiples are typically 3–7 times EBITDA. Understanding the factors that influence valuation, and developing them before the sale process begins, can meaningfully increase the value of your business and lead to a better outcome.
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Growth and growth potential (a growing business is worth more than a flat one)
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Customer concentration (one customer making up 50% of revenue is a risk that buyers will price in)
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Management dependency (a business that relies heavily on its owner is harder to sell)
3. What buyers are looking for in 2026
The European SME transaction market is active. Private equity investors, strategic buyers, and private individuals are continuously looking for quality businesses, but are more selective than before. Growth alone is no longer enough. Many buyers prioritise consistent profitability, predictable cash flow, and a clear strategic fit, above all else.
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Consistent profitability over at least 2–3 years
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The business can operate without the owner's day-to-day involvement
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Up-to-date and well-organised financial records
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Diversified customer base (depending on the sector)
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A clear plan for continued success after the change of ownership
4. The sale process, step by step
A well-managed sale process typically follows the structure outlined below. The process generally takes 3–9 months. An experienced adviser accelerates progress, maintains competition among buyers, and improves the likelihood of completing the transaction.
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Preparation: valuation and preparation of materials
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Confidential approach to buyers
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Indicative offers and evaluation
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Due diligence: the buyer reviews the business, financials, and contracts
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Final negotiations and legal documentation
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Signing and transition period
5. The most common mistakes sellers make
A good adviser helps you avoid all of the following. The cost of a mistake in a business sale is typically many times greater than the advisory fee.
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Overpricing the business and deterring serious buyers
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Underestimating how long the process takes
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Allowing business performance to deteriorate during the sale process
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Accepting the first offer without running a competitive process
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Inadequate accounting and / or legal preparation
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Choosing an adviser based on the highest valuation estimate rather than on competence
6. How to choose an adviser
The right adviser can have a material impact on the outcome. Ask at least these questions before making your decision:
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Have they sold businesses similar to mine?
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How many buyers do they actually approach?
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What is their fee structure — are their incentives aligned with yours?
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Will I have one point of contact, or does responsibility move between people?
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Can they show examples of the materials they produce?
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