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Preparing Your Business for Sale – A Timeline

Preparing Your Business for Sale – A Timeline

Selling your business is one of the most important financial and personal decisions you will ever make.The difference between a smooth, profitable transaction and a stressful, undervalued sale often comes down to one thing – preparation.


At EXITS.co.uk, we guide owners of established UK SMEs through the entire sale process, using proven strategies to maximise value and ensure a smooth handover. Below is a practical timeline to help you understand what to expect and when.


3 Years Before Sale – Strategic Planning

1. Clarify Your Exit Goals


  • Do you want a full exit, partial sale, or phased handover?

  • Will you stay on as a consultant or walk away completely?

  • What is your target sale price, and is it achievable in today’s market?


2. Get an Independent Business Valuation


This sets your starting point and highlights where value can be improved.


3. Strengthen the Business Structure


  • Ensure shareholder agreements, contracts, and licences are in order.

  • Separate personal and business expenses.

  • Review tax structure with your accountant.


4. Build a Self-Sufficient Management Team


Buyers pay a premium for a business that runs without day-to-day owner input.


2 Years Before Sale – Building Value

1. Increase Predictable Revenue


  • Secure long-term contracts.

  • Diversify your customer base.

  • Reduce reliance on a handful of large clients.


2. Maximise Profitability


  • Improve margins where possible.

  • Eliminate waste and inefficiency without harming growth.


3. Strengthen Operational Resilience


  • Review supplier agreements and reduce single points of failure.

  • Keep equipment, systems, and premises up to date.


4. Protect Intellectual Property


Register trademarks, patents, and domain names. Ensure they are owned by the business.


18–24 Months Before Sale – Engage Your Broker & Position for Market

1. Appoint an Experienced Business Broker


By this stage, an experienced broker like EXITS.co.uk can help you:


  • Fine-tune the business for market readiness.

  • Identify and target your ideal buyer pool.

  • Create competitive tension to maximise offers.


2. Prepare a Confidential Information Memorandum


This professional sales document is the backbone of your sale process, highlighting strengths and opportunities.


3. Organise Due Diligence Material Early


We help you prepare all financial, legal, and operational information so the process runs smoothly.


12 Months Before Sale – Pre-Market Optimisation

1. Lock In Key People


  • Retain senior staff with incentives or agreements.

  • Ensure management succession plans are clear.


2. Finalise Outstanding Issues


  • Resolve any legal disputes.

  • Clear aged debt or problematic accounts.


3. Polish the Business Presentation


  • Update branding and website.

  • Tidy premises and equipment.

  • Refresh marketing collateral.


6–12 Months Before Sale

1. Handle Enquiries & Viewings


We screen prospects, arrange meetings, and manage buyer expectations.


2. Negotiate Offers


Competitive tension is maintained to secure the best terms—not just the highest price.


0–6 Months – From Offer to Completion

1. Agree Heads of Terms


Outlining the deal before entering legal drafting.


2. Complete Due Diligence


Buyers review all aspects of the business. Early preparation pays off here.


3. Finalise Legal Contracts & Completion


Once contracts are signed and funds transferred, ownership changes hands.


Why Early Preparation Pays Off

Starting your sale preparations three years ahead gives you time to:


  • Optimise profitability and stability.

  • Remove risk factors.

  • Engage the right buyers at the right time.


If you want to sell within the next three years, now is the time to start planning.Plan your exit with confidence.


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